VIX Hits Multi-Month High
The self-fulfilling desire for risk is finally breaking out, with the VIX rising another 3% today, after an impressive 20%+ move on Friday. Was the VIX in the 20s just an artificially deflated and Fed-(un)sustained baseline? Now that QE is semi-potent and only affects MBS, perhaps the VIX will find its trading range north of 30. Which begs the question: once QE is completely exhausted, and politicians find there is no politically palatable way to push for another stimulus, will we be promptly back to a 60+ VIX?