SENTIMENT: VIX BACK TO 10 HANDLE SUGGESTS COMPLACENCY
The chart below shows the well-known CBOE Volatility Index (VIX), which is a barometer of how fearful U.S. stock investors are.
The VIX remained at ultra-low levels during the housing bubble era and it has been following a similar pattern for the past eight years or so.
During both bubbles, the VIX remained suppressed because the Federal Reserve backstopped the financial markets and economy with its stimulative monetary policies after the Great Recession.
