Tuesday, October 14, 2014

‘Fear Gauge’ at Highest Level Since Eurozone Crisis

US stock market volatility has jumped to the highest since the eurozone debt crisis, according to a closely watched index, the the CBOE Vix index of implied US share price volatility.

It jumped to 24.6 late on Monday and is up again this morning. On Thursday, it was as low as 15.

That's a very strong move, but things have been much worse. At height of the recent financial crisis – the Vix index peaked at 80.1 in November 2008.

Could we get there again? Yeah.

I have been warning for some time in the EPJ Daily Alert that a crash event in the stock market is a very real possibility, given the erratic Federal Reserve monetary policy AND the fact that it appears no one among the Fed members is actually monitoring money supply growth, including Fed chair Janet Yellen! Money supply drives stock market activity when the Federal Reserve is manipulating the money supply. SEE: Austrian School Business Cycle Theory

In her speeches and press conferences since becoming Fed chair, Yellen has failed to even mention the words "money supply."

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