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Weekly Comic: VIX hits all-time low; is volatility dead?

Published 07/27/2017, 09:36 AM

Investing.com - The VIX, Wall Street's so-called 'fear gauge', crashed to the lowest level on record this week, as a raft of better-than-expected earnings reports boosted appetite for equities.

The CBOE Volatility Index, fell to an all-time low of 8.84 on Wednesday. Its historical average is 20.

The index, which is based on options contracts on the S&P 500 30-days in the future, is down around 37% so far this year.

The VIX has been establishing trading ranges that continue to fall in recent weeks as the U.S. stock market has reached repeated records.

17 of the 26 lowest closes in history for the VIX have come in the last three months.

Will the recent death of volatility sow the seeds of the next financial crisis?

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Latest comments

Thank you for this article, it nailed the top perfectly (so far).
Calm before the storm? It seems kind of odd that the USD got slammed, and the VIX is still that low. The Fed casts considerable doubt on the economy, and equity markets shrug it off. Sounds like a lot of overconfidence and greed, and a recipe for disaster.
william i definitely agree with you looks like easy money on the short side in september
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