Market Volatility Is Down

There has been a spate of news indicating that the economy is on track for a "weak" recovery. However in the face of this bad news, the market has remained relatively stable in recent weeks. The investment journalists are pointing to a decline in the VIX which indicates investor fear and anxiety about the market even going so far as to say that the VIX will likely decrease further in the coming months.

Like anything else that we read about the stock market, take it in with a grain of salt. Still it is true that the market has been less volatile this last week.

Reuters: Caution prevails, but volatility seen lower

But the VIX fell 1.6 percent to end at 21.74...


...expects volatility to decline in coming weeks, with the spot VIX sliding through 20 in late August and September to reach the 15 to 18 range.


The VIX, a yardstick of investor anxiety, is a 30-day risk forecast of stock market volatility.