What Does the Vix Mean for Investors Today?

Investors are more complacent than they have been in a decade, according to Wall Street's fear gauge. The CBOE Volatility Index (Vix) remains low, signaling investors feel generally optimistic. It has fallen by about 27% this year and hasn't traded above its long-term average of 20 since November. The Vix has seen similarly extended low periods on two occasions in recent history. Once ahead of a Fed rate hike in the mid-1990s, and in the years leading up to the 2008 financial crisis. While the stock market went on an historic run in the 1990s, 2008 was obviously a different story. In other words, the complacency in today's market could really go either way.

This article was written by a staff member of TheStreet.