In a sign of falling risk expectations, the Volatility Index (VIX) hit a new 52-week low yesterday of 22.19, apparently right before the Fed’s statement. It then shot back up, to higher than it started the day, as the bulls were sucker-punched by the end of day market rout. Still, the VIX remains at one of its lowest levels this year.
Option markets continue to price less risk for stocks, not more, as the year wears on.
Bears will surely find this perplexing.