By SIMON CONSTABLE
The so-called "fear gauge" is looking low and that has some investors concerned. The matter at hand is complacency, or not worrying enough about the risks of investing.
The CBOE volatility index, or VIX, is known colloquially as the fear gauge. It measures the price that investors are willing to pay to buy insurance against a drop in the broad stock market.
"It gives you an idea of how much people will pay up for that protection," says Russell Rhoads, director of education for CBOE’s Options Institute in Chicago. "The more concerned they are, the more it goes up in value." Read more here.
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