Christmas Card from the Stock Market: The CBOE Volatility Index Returns to Pre-Crisis 2007 Levels
The VIX Index closed yesterday at 15.45, the lowest closing value for the stock market's "fear index" since July 19, 2007, almost three and-a-half years ago. A little more than two years ago, the VIX reached an all-time record high of 80.86 on November 20, 2008 as fear gripped the stock market and the financial crisis was spreading globally. The fact that the VIX Index has returned to the pre-crisis levels of the summer of 2007 provides further evidence that the worst of the financial crisis is far, far behind us, and the U.S. stock market has made a lot of progress towards increased stabilization and reduced volatility. 2011 could be a great year for the U.S. stock market and the U.S. economy.