Volatility Index Falls To A Level Suggesting ‘Market Correction is Complete’

May 18, 2009 Mark J. Perry

The CBOE Volatility Index closed today at just barely above 30 (30.24), falling almost 3 points from Friday’s close of 33.12, and is now more than 50 points below the November highs that were above 80.

According to Yale Professor Ian Ayres at the Freakonomics Blog on December 24, 2008: “When it (the VIX) drops below 30%, it will be a strong indication that the market correction is complete and we’re back to business as usual.”

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

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Volatility Index Falls To A Level Suggesting ‘Market Correction is Complete’

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