There's nothing hotter than the VIX and volatility this summer. The VIX is near its lowest levels for as far back as it's been calculated, all the way back to 1990.
In fact, the VIX appears to have hit its lowest level ever -- below 9.0 -- immediately following last Wednesday's Federal Open Market Committee announcement.
This is a concern that I've expressed as well -- and it isn't limited to the equity market. Consider the 10-Year U.S. Treasury VIX:
This indicator has only been this low on three previous occasions, and each one preceded a large rise in interest rates. That hasn't happened so far, as Treasuries remain range-bound. But it's another sign that contrarians such as myself can point to about market risks.
Blackrock recently published a report that said markets can remain placid as long as we have a sustained U.S. economic expansion (which recent data support).
Source: Bloombnerg Pro Terminal
Trader Bozhidar Arabadzhiev
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