writes:
If you?re wondering whether the market meltdown of early October left stock investors with any lingering sense of anxiety, it didn?t.
After surging to a record, the Credit Suisse Fear Barometer, which compares bearish to bullish options prices three months from now, retreated to the lowest level in more than a year. Another measure of investor concern, the cost of protection against a 10 percent drop in the Standard & Poor?s 500 Index, has slipped to the lowest in two months amid a record rally in stocks, according to data compiled by Bloomberg.
With stimulus flowing from central banks in Japan and Europe, reports showing the U.S. economy is accelerating and mutual fund managers trying to catch up with benchmark indexes, stocks are surging anew. The Chicago Board Options Exchange Volatility Index (VIX) has retreated below 14, its average level over the last 12 months.
?We?ve weathered this growth scare correction and two other central banks in the world are ramping up purchases,? Andrew Wilkinson, the Greenwich, Connecticut-based chief market analyst at Interactive Brokers LLC, said in a phone interview. ?People are seeing it as the correction is over and long live the bull.?
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