Published in Reuters
The U.S. stock market has been strangely calm this year, much to the chagrin of investors who have been betting billions on volatility.
The CBOE Volatility Index, or VIX, is down about 30 percent year-to-date, even though some investors have been expecting a rockier stock market as the Federal Reserve gets ready to raise interest rates and the six-year-old bull market ages.
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“People have a higher fear of what’s going to happen than what actually happens and therefore they’re willing to pay for insurance,” said Mike Venuto, chief investment officer at Toroso Investments. But he noted, “Volatility is not something that’s sustainable.”
