Here’s a great observation from Cullen Roche at Pragmatic Capitalism regarding the VIX, which everyone thinks is bizarrely low given all the world doom headlines. Have people just become too complacent?
No. If you have a long-term perspective, the VIX remains quite elevated — near crisis levels arguably.
This chart says it all. We’ve come down a lot, but compared to pre-crisis levels, we’re still heavy.