VIX Is Sounding Alarms While Greed Engulfs Global Markets
- Fear gauge remains above 20 while stock markets flash euphoria
- Strategists cite tech risk, call buying and the lack of shorts
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Fears unleashed by the once-in-a-century pandemic are clinging onto volatility markets even as stocks boom to record highs and Wall Street speculators gorge on every risk.
For all the euphoria in markets, the Cboe Volatility Index has stayed elevated in an historic divergence between this gauge of investor fear and rallying equities. The VIX hasn’t closed below 20 since February last year. Its current level of 23 is some six points above the decade average.