Blog: The VIX-One of these things is not like the others . . .
The VIX diverges from fundamental risks, for now.
Most of you probably remember the old Sesame Street song "one of these things is not like the other." We seem to be singing that song now about the VIX and similar implied volatility indices. While the other factors I incorporate in the Market Uncertainty State Indicator (MUSI) are pointing towards high uncertainty, the most reliable of them all, implied volatility, is diverging from the others for the first time since the original VIX was created in 1986. The question is why?
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