Daily Traders Edge

The stock market’s biggest fear is overblown

October 26
14:54 2017

For months, stock market doomsayers have warned about the glaring lack of price swings taking place.

And they’ve been particularly harsh on the herd of investors betting against volatility, arguing that the quick profits they’re enjoying are setting the market up for a catastrophic event in the longer term.

Don’t get complacent or lulled into a false sense of security, because a reckoning is coming as soon as volatility picks up, these skeptics say.

However, Wednesday’s events showed that perhaps their fears are overblown.

As the CBOE Volatility Index (VIX) spiked as much as 18% amid the benchmark S&P 500’s biggest drop in seven weeks, traders did something unexpected: they placed more short bets on the so-called fear gauge.

Continue Reading at Business Insider

Related Articles

Newsletter Signup

Sign up for our free newsletter