Given lackluster corporate earnings and anemic GDP, you’d think investors would be worried. In turn, you’d think the CBOE Volatility Index (^VIX), or VIX, would be spiking.
Yet that’s not the case; in fact VIX is down sharply over the past 3 months. Although that may seem counterintuitive, Schaeffer’s Investment Research contributor Adam Warner says the price action makes all the sense in the world. People call the VIX Wall Street’s fear index, but “it’s not an emotional gauge,” he noted. “It’s a measure of volatility expected in the market within the next 30 days.”
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