Bloomberg: “Stock Investors Are on Notice After Wall Street’s Fear Gauge Jumps”By datatrekresearch in IN THE NEWS
Excerpt from Bloomberg quoting DataTrek co-founder Nick Colas:
.... "The VIX tumbled 8 points to 13.6 in the first half of 2023. Going by the calendar alone, the odds of a short-term spike are long. July has been the calmest of all months since the VIX began. The index just closed below its long-term average — roughly 19.6 — for 14 weeks in a row, a streak not seen in three years. In all previous 16 instances of prolonged clam, the duration averaged 50 weeks, data compiled by Bloomberg show.
“Once we’re in a low-vol regime, it tends to last unless a true ‘unknown unknown’ comes along,” said Nick Colas, co-founder of DataTrek Research. “With the VIX well below average now, we look to be in a low-vol/good return environment until a genuine shock comes along"....
Full article here on Bloomberg.