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For you investor types, do you hear VIX quotes discussed

30Adawg

War Daddy
Gold Member
Jul 10, 2007
23,162
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on any business report on TV? I'm thinking, I have not. Wonder why that is? Given this is a reflection of investor sentiment, seems this would be a normal topic discussed. Near real-time faith/confidence in the market and, the ability to profit from either end of the spectrum seems relevant to me.
 
Currency traders talk about it all the time. It's essential to understand

if you want to do it successfully.
 
Its discussed every day on CNBC. The VIX is a pretty misunderstood

Index, so I'd just as soon the regular network news ignore it.
Huge spikes in the VIX have coincided with plummeting stock markets.

A subdued, calm and/or falling VIX has generally coincided with rising markets.

There have been exceptions, and the truth is a lot more subtle than I've stated above.
The VIX has been pretty much exactly what I'd want to see over the past few years if one is buying and owning stocks, but that doesn't really help me invest. It's just nice-to-know information. The value of the index for me comes when it changes.

It can be helpful in pricing options, since traders of wasting assets demand more premium if there's more volatility.
 
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