Am I right side up or upside down?
Is this real, or am I dreaming?
--Dave Matthews Band
After Monday 7% crush lower, US equity volatility indexes are touching lows last seen in 2007.
While not timing devices, low implied vols reflect complacency among market participants. Investors are seeing less need to pay up for downside protection.
Expectations of another fix of stimulus seem quite high. Moral hazard...
position in SPX
Tuesday, August 14, 2012
Subscribe to:
Post Comments (Atom)
1 comment:
Fear tends to manifest itself much more quickly than greed, so volatile markets tend to be on the downside. In up markets, volatility tends to gradually decline.
~Philip Roth
Post a Comment