Economics
VIX Finds Comfort Zone as Fed Soothes Trader Profit Anxiety
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Investors are facing the prospects of declining corporate earnings, slower economic growth and higher interest rates. Yet a gauge of market volatility is showing a level of comfort not felt in almost two years.
The Chicago Board Options Exchange Volatility Index, which is derived from the price of hedges on the Standard & Poor’s 500 Index, closed Thursday more than 10 percent below its 10-day, 50-day and 200-day moving averages. Before March, the gauge of U.S. equity trader anxiety hadn’t fallen that much since July 2013, data compiled by Sundial Capital Research Inc. show.