Monday, 7 January 2013

VIX Index hits Lowest Level since Aug-12

The CBOE Volatility Index, or VIX, hit 13.8 on 4 January 2013 according to data released by FRED. This was the lowest level since 17 August 2012 and represented a drop of 39% since 28 December 2012. No doubt the so-called "fiscal cliff deal" was the driver of this drop. Look therefore for the VIX index to increase again over the coming couple of months as the new deadline for the sequester (a series of automatic cuts in federal spending) approaches.

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