WEBINAR: Designing and Implementing a Retirement Plan CLICK HERE FOR INVITE AND TO REGISTER.The sharp decline in market volatility has directed a lot of attention to low readings in the CBOE Volatility Index (VIX). Given all of the plausible scenarios for market turmoil not that far in the future, traders have been wondering: Isn't VIX at least a tad underpriced? Nicholas Colas from ConvergEx responds: "In practice, the VIX measures expected changes in stock prices over the next 30 days. That's it. It is heavily informed by recent actual volatility, as I noted. A VIX reading of 14 shouldn't make anyone, anywhere, feel more confident about what will come down the road in October or beyond. It is simply the relative assurance that the weather will be clear tomorrow."