Since QE2, Volatility has been falling.
As the fascinating chart below from Ron Griess shows, the volatility of markets, post Flash Crash was drifiting lower until the modest sell off in March 2011 sent the VIX spiking.
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click for larger chart
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S. Treasuries." -Bill Gross
Signs continue that European markets are getting tired. The Spanish and Italian stock markets, big beneficiaries of the sharp decline in their bond yields over the past few months are falling to the lowest since Feb 1. The European bank index is at a 1 1/2 week low after earnings reports from Commerzbank and Credit Ag (RBS bouncing although reporting weaker than expected earnings) were disappointing. This market action is in spite of the German IFO business confidence figure which rose to a 7 month high coming in a touch above expectations and Italian consumer confidence which bounced more than...
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May 24th, 2011 at 1:36 pm
[...] A look at some conflicting measures of risk appetites. (Data Diary also Big Picture) [...]
May 24th, 2011 at 1:38 pm
Volatility was also “falling” for the 3 months before your silly choice of date (“first hint” in mucho hindsight).
Pretty arbitrary. Zero value here.
May 24th, 2011 at 10:18 pm
So why are the mutual funds so bearish..
http://www.readtheticker.com/Pages/Blog1.aspx?65tf=228_those-that-must-be-long-the-stock-market-are-bearish-2011-05
May 26th, 2011 at 8:05 am
And how is this “fascinating”? Any idiot can bring up a chart of the VIX and tell a story.
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BR: Why is anything fascinating? That is a deeply philosophical question.
PS: No, not any idiot can identify an interesting and relevant chart and post it to a well trafficed blog where it will be seen by active market participants.
But as you have so ably demonstrated, any idiot can post a comment.