Market’s ‘Fear Gauge’ Nears 1993 Low
Low reading indicates investor comfort with current market but also raises questions about index’s reliability
A measure of expected stock volatility, known as Wall Street’s fear gauge, slid Monday to its lowest level in nearly a quarter-century, indicating investor comfort with the current market but also raising questions about whether the metric was still a reliable indicator of investor anxiety.
The CBOE Volatility Index, also called the VIX, fell as low as 9.67 Monday before closing at 9.77, down 7.6% on the day and marking its lowest close since ending at 9.70 on Dec. 27, 1993, according to The Wall Street Journal’s Market Data Group. (read more…)