3 ms·
>The VIX is generally consistantly low (10 - 15) until it isn't. To get a sense of what a crisis would look like, we can compare to a few historical values. Wh
by sigmar 9y ago
>The VIX is generally consistantly low (10 - 15) until it isn't. To get a sense of what a crisis would look like, we can compare to a few historical values.
What's the point of using a metric that can turn on a dime in a predictive model?
- cbanek 9y agoPeople use a low VIX to represent complacency, which is typically present before a market crash, along with the famous irrational exuberance. Once it goes up, it means there's volatility in the future coming, because the VIX is based on S&P 500 options.