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The VIX: Investors are simply not afraid!

 From The Economic Spy

The VIX, an indicator of market volatility and investor fear, closed today at 22.73 During the financial crisis in 2008 the VIX traded up to 90, an incredible indication of investor fear (click on the chart to enlarge). The normal range for the VIX, if there is such a thing, has been in the 15 to 25 range.

From that 2008 date, The Political Commentator wrote in "Where do the markets trade from here", "... Volatility measured by the VIX reached new record highs. This measure of fear and anxiety which has normally ranged between 15 and 25 hit a record close to 90 before settling at 79.13..."

While we don't face exactly the same scenario as when there was no global liquidity and fears of a global financial collapse seemed very real, the news has not been particularly good. Yet the VIX has been extremely subdued
indicating that investors remain extremely calm and somewhat complacent!

With the VIX closing today at 22.73, what are some of the crises that are seemingly being ignored to some extent by the markets.
VIX-worthy events There is the sovereign debt crisis and violence in the streets in Greece where a default is certainly possible. This event, were it to occur, would have ripple effects around the world and particularly in the EU as the rest of the PIGS would be severely impacted (see "What is CDS or credit-default swaps").

There is the economy, the Middle East, jobs, weak manufacturing, the US debt ceiling debate, the foreclosure crisis and more. So is the market missing something or is there nothing to worry about? The VIX might not be telling the whole story!Don't miss any new articles about your money, the economy or your job!

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