The VXX is basically at multi-year lows right now, so one of the following is true: 1. Markets think that the global economy is very calm and predictable right now. 2. I’m misunderstanding an important link between “volatility = unpredictability of world economics” and “volatility = premium on short-term SP500 options”.
VXX is not a good way to compare volatility across years. VIX and similar measures are showing fairly high volatility, but no signs of new panic recently.
The VXX is basically at multi-year lows right now, so one of the following is true:
1. Markets think that the global economy is very calm and predictable right now.
2. I’m misunderstanding an important link between “volatility = unpredictability of world economics” and “volatility = premium on short-term SP500 options”.
VXX is not a good way to compare volatility across years. VIX and similar measures are showing fairly high volatility, but no signs of new panic recently.