So far, investors don't seem to be too worried about a US government shutdown..

Jay Soloff

Argonath Financial

So far, investors don't seem to be too worried about a US government shutdown... or anything else for that matter. In fact, overall volatility is still sitting at historically low levels. The CBOE S&P 500 Volatility Index, or the VIX, is trading just over $14. The long-term historical average of the so-called fear gauge is right around $20. Basically, when the VIX is under $20, investors don't believe a market meltdown is on the horizon. For the vast majority of 2013, the VIX has been well under $20 - and it's true, the market has been relatively calm this year. However, if we start to see a spike in the VIX, particularly if the index trades over $20, it may be time to consider lowering risk exposure. Let's see what happens to the VIX as the looming government shutdown approaches.

Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...


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