Interesting article about the correlation between VIX, the volatility on options and stock prices going forward (link). Most suprising is number three, which goes against common wisdom >>
3) We have never had a bear market within 60 trading days of a low volatility period - Yes, we've had market corrections of about 5-6% in March/April, 2006; August, 2005; September, 1994; January, 1994; and July, 1985. We have never had a decline of 10% or more, however. The idea that we are in a complacent market period and hence due for a frightening drop is not supported by market history.
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