Tuesday, February 17, 2009
If you were to just focus on equity prices, which are revisiting their November lows, you would conclude that the market is really afraid of the future. But the VIX index, which essentially measures the fear embodied in those prices, is way down from its October-November highs. I'm not sure if there is a message here, but it is worth highlighting with an update to this chart. If anything, it tells me that equity prices have some decent support here, if only because the degree of fear, uncertainty, and doubt has declined meaningfully in recent months.
Posted by Scott Grannis at 12:50 PM