Excerpt of article is below:

VOLATILITY IS VOLATILE
Days like Monday help explain why the debate over whether low levels of volatility are a sign of complacency is a bit misguided. Although current volatility is depressed as measured by the CBOE Volatility Index, or VIX, traders don’t expect it to stay that way. That can be seen in the CBOE VVIX Index, which is the implied volatility of the VIX. The ratio between the two gauges just reached a new high, according to Bloomberg News’s Cecile Vannucci. Since the last peak on Aug. 9, the VIX posted moves of more than 20 percent on four separate days, including a 44 percent surge on Aug. 10. At the same time, exchange-traded products that benefit from market calm just had their biggest weekly outflows on record, while those that gain with greater stock swings gathered more money. Then again, just because volatility is rising doesn’t mean stocks are doomed. In a note to clients Monday, Cumberland Advisors (Ed Note: Leo Chen, Ph.D. was the source) said that when comparing one-year returns for the S&P 500 Index using a randomly selected date to one-year returns after the VIX drops to a 52-week low, they find no statistical significance between the two returns.

Read the full article on Bloomberg: https://www.bloomberg.com/news/articles/2017-09-25/the-daily-prophet-north-korea-proves-adept-at-market-timing-j80mn8fp

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