Has 2014 stock market volatility really gone the way of dodo birds and dinosaurs as claimed?
The news du jour is that falling VIX means that stock market volatility (NYSEARCA:SPY) is non-existent. Is it true? Recent headlines give this innuendo. Here’s a tiny sample:
VIX Tumbles to 9-month Lows – Zerohedge
VIX Volatility Index Falls to Lowest Level in Over a Year – Wall Street Journal
Fear Strikes Out on Wall Street – Reuters
The dominant argument in these news articles is how volatility has been virtually non-existent because the VIX has slid more than 11% year-to-date and over 30% during the past two years.
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