I have been following some of the commentary regarding the VIX of late – much of the commentary seems to be of the ilk that there is something wrong with the index because perceptions of volatility (fear) have been dropping out of the market.
From my perspective too much is read into a simple tool – the only judgement that can be made is that the VIX is now experiencing a period of low volatility. This is of the same levels as were experienced pre GFC, there is nothing else that can be judged by the chart above.
