What, Me Worry? ? Addendum

VIX Futures: What, Me Worry? ? Addendum by 720 Global

In our latest article “What, Me Worry” we highlighted that complacency in the equity markets, as measured by implied volatility (VIX), is at levels rarely seen. On its own this is not breaking news, but it is very strange when contrasted with the palpable concerns over the coming election and more general market risks such as weak economic growth, extreme valuations, corporate earnings recession and various geopolitical worries. We ended the article asking investors to consider employing equity insurance which looks cheap in the context of the risky environment.

The VIX is an equity volatility index that uses put and call option pricing to calculate an implied level of...