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Interesting to see the volatility in all these market these days. I wonder how much the spread of information/social media plays a role in this. it does seem l
by an4rchy 9y ago
Interesting to see the volatility in all these market these days.
I wonder how much the spread of information/social media plays a role in this. it does seem like most of these swings seem to be from retail investors.
- abakker 9y agoInteresting that VIX has been at an all time low for the last year or more. So volatility has been at an all time low. These last few days have been rough, though.
- keebEz 9y agoVIX attempts to measure volatility but it is not volatility itself. The lowness of VIX has been driven by the relative increase of the denominator (total asset value, which has surged in the last few years) not by a decrease of the numerator. In general, it's usefulness as an indicator of volatility has decreased lately.
- marshray 9y agoVIX measures the risk premium on options on the S&P 500 index. I don't see how total asset value ends up in the denominator? Another explanation is that VIX is being actively dampened by the growing popularity of the 'short volatility' trade. E.g., the SVXY ETF among others. We're seeing today just how volatile volatility can be!