Reuters with a piece citing Marko Kolanovic, J.P. Morgan's global head of macro quantitative and derivatives strategy.
- Cboe Volatility Index is elevated despite muted moves on the benchmark S&P 500
- The gap between investor expectations for volatility in U.S. stocks, as measured by the VIX, and actual moves on the S&P 500 is near its highest levels over the past 30 years
Kolanovic says that the caution is not justified
- expects stocks will keep climbing
- The gap is “indicating a bubble of fear and demand from investors looking to hedge or profit from a hypothetical market selloff.”
