We have time and again pointed to the warning signals being sent from credit markets, FX volatility skews, and equity option volatility technicals (skews and implied correlation) but while the mainstream media is behooven to watching every tick in the 'fear index', the 'simple' VIX has consistently underpriced risk in the face of danger. Furthermore, this implicit optimism, leaves equity options among the cheapest macro hedges across asset classes currently (especially relative to FX, Rates, and Credit). FX options offer the next cheapest hedge with credit already notably stressed. BAML's research group finds Nikkei (Japan), Nifty (India), and ASX200 (AUS) puts attractive as global macro (crash beta) hedges with Copper, IG, and HY credit the least attractive at current levels. So the next time you hear the VIX is up or down or sideways, treat it with the contemporaneous weighting it deserves (or potentially discount its eternal optimism entirely) and remember that while VIX is frequently cited, the availability bias needs to be suppressed when investing.