Dean Curnutt Makes the Case for an Even Lower VIX

The video tutorial discusses the VIX, a measure of market volatility, and its implications on market dynamics. It explores the current low VIX levels, the realized volatility in the S&P, and how these factors affect market perception and stock picking strategies. The tutorial also examines the cyclical nature of low volatility and its potential impact on global markets, particularly in New York. It highlights the challenges investors face in generating returns in a low volatility environment and suggests that market changes may occur with shifts in asset prices and risk management strategies.

What is the VIX primarily a measure of?

• Short-term option prices

• Corporate earnings

• Long-term stock trends

• Interest rates

Why might some argue that the VIX should be lower than its current level?

• Because the realized volatility in the S&P is very high

• Because the realized volatility in the S&P is very low

• Because the VIX is always overestimated

• Because the VIX is not related to the S&P

What is a potential consequence of continued low volatility in the market?

• Easier stock picking

• Increased market movements

• Difficulty in generating alpha

• Higher interest rates

What tends to happen in cycles of low volatility according to the transcript?

• They are unpredictable

• They cause market crashes

• They reinforce themselves

• They lead to high volatility

What might trigger a change in the current low volatility market environment?

• A sudden increase in trading volume

• A decrease in interest rates

• A little bit of damage to asset prices

• A significant increase in asset prices