VIX doesn't indicate a recession, the data does; and it sucks.
VIX Outside of `Red Zone' Indicates No Recession, Goldman Says
Share on Facebook Share on Twitter Despite a recent surge, the so-called fear index remains in a trading range that suggests investors aren’t expecting a recession this year. With an average of about 24 this month, the Chicago Board Options Exchange Volatility Index is consistent with a scenario of positive, though low, economic growth, according to a Goldman Sachs Group Inc. report. The “Red Zone” happens when the VIX is above 25 and climbing, which historically coincides with flat or negative U.S. gross domestic product. The oil rout and concerns about China’s slowdown have put the Standard & Poor’s 500 ... (full story)