VIX’s Decline Triggers a How-Low-Can-It-Go Debate: Taking Stock
This article is for subscribers only.
In a matter of weeks, Wall Street worrywarts have gone from fretting over high volatility to fearing bets on stock swings are falling too fast.
Strategists at Evercore ISI on Tuesday joined calls last week from their counterparts at Tallbacken Capital and WallachBeth Capital who said it’s time to close bets that price moves for the largest U.S. companies will keep falling. The rationale: hospitalizations in the U.S. are reaching record high levels, while the Cboe VIX Index has already dropped to its lowest level since August. Betting on lower volatility at this point may not be worth the risk, they say.