I don’t know about you, but I always have at least a little fear in my head whenever I put my money to work in the financial markets. Now, I don’t let this healthy sense of skepticism about the positive direction in stocks rule my world; however, it is just plain smart to be on the lookout for the “fear factor” operating in stock.
Well, so far, the fear seems all but gone from this market.
One way to measure this fear factor numerically is via the CBOE Volatility Index, or VIX. The VIX tells us what investors are willing to pay for options protection from a down market. Recently, the VIX plummeted to a five-year low, and that tells us that there is virtually no real fear out there about a market pullback.
Read more about why fear has disappeared from investors’ minds at Eagle Daily Investor.