Smart Money Going to War With VIX-Obsessed Stock Market Bears
- Bets on volatility drop contrast with demand for VIX ETPs
- Fund managers buy shares, while individuals keep pulling out
Will Five Decades of Stock Market Calm Continue?
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They can’t both be right.
Below the surface of the calmest stock market in five decades, a divergence in sentiment has opened in which institutional investors are surrendering hedges and diving deeper into stocks, while individuals load up on protective options and sell equity funds. Bets are piling up at the fastest rate ever as stocks meander, setting the stage for pain when the sleepy spell resolves.