Financial Times FT.com

Subdued Vix signals investor battle fatigue

By Anuj Gangahar and Michael Mackenzie in New York

Published: March 4 2009 18:15 | Last updated: March 4 2009 18:15

Investors are finding that the Vix volatility index, widely followed last year as Wall Street’s gauge of fear, is no longer the accurate barometer that it was.

When the S&P 500 fell sharply last October and November, the Chicago Board Options Exchange’s Vix, which measures the implied volatility of options based on the broad US equity market benchmark, surged to record highs.

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