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Deep fear

Regular readers are familiar with the VIX 2/8 months spread "concept". This is one of those under the hood stress indicators to keep track of. In times of stress, the crowd buys short term hedges as the first "instinct", resulting in the spread moving higher. We have not seen these levels of the spread since the SVB crisis. We are in "deep fear territory. The question is do we see panic kick in?

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