Fear Has Gone Missing in Wall Street’s Slow-Motion Bear Market
- Wall Street ‘fear gauge’ far below levels seen in other routs
- VIX typically trends much higher when credit spreads surge
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For all the pain that has piled up in the US stock market, one thing has been in surprisingly short supply: Fear.
Virtually every corner of Wall Street is being rattled by worries that rising interest rates will drive the economy into a recession, spurring large price swings in everything from junk bonds to foreign currencies. But the CBOE Volatility Index, the so-called fear gauge of stock-investors’ sentiment, is holding well below levels seen in past bear markets.