The VIX has been a traditional measure of sharemarket confidence, but increasingly its credibility is being called into question

The VIX has been a traditional measure of sharemarket confidence, but increasingly its credibility is being called into question. The accompanying article makes some excellent points, particularly around the level of complacency in the market at present. With central banks around the world continually adding fuel to the fire, sharemarkets are complacent and pretty much expect further gains as a result. The problem is that sharemarkets in many instances don't necessarily reflect the health (or ill-health) of the underlying economy. (VIEW LINK)