Wednesday, February 2, 2011

Let's called FF without Vix, the Fear Factor-Real World FFRW.  FFRW usually moves opposite to VIX.    Not since May 2010, when stock option volatility pricing (Vix) started moving in lock step with the FF. 

To rephrase, Real World Fear has been increasing whilst stock market volatility fear (Vix) has been decreasing.   To sum it up-if you trust the Fed to ramp the stocks, you can also rest assured that everything else is going to hell in a handbasket.  
 





No comments:

Post a Comment

Insightful and Useful Comment!