tag:blogger.com,1999:blog-897456774486153841.post473367796825568663..comments2024-03-28T06:07:36.391-07:00Comments on VIX and More: Chart of the Week: Volatility and Mean Reversion in 1987-88 and 2008-09Bill Lubyhttp://www.blogger.com/profile/01241003017364820134noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-897456774486153841.post-34105926304179569822009-07-26T20:41:18.910-07:002009-07-26T20:41:18.910-07:00I wonder, if it makes sense to compare to previous...I wonder, if it makes sense to compare to previous bubbles. The prior bubble bottomed in march 03 (similar to our recent bottom). At the end of July 03, the VIX was trading at around 22, while the VXO was around 24. <br /><br />What is interesting to note however is the VIX continued to decline into the teens for the rest of that year. In fact, over the next few years, the market staged a massive rally with the VIX entering a multi-year down trend, almost reaching single digits at one point.<br /><br />So while there are many out there that will point to the current VIX level as an arguement of why a top may be near (and they may be right), i think we should be open to the possiblity that it could head significantly lower.The Small Fishhttps://www.blogger.com/profile/04619208391948286184noreply@blogger.com