Is the VIX cheap at 19? 10 day historical volatility is close to 10, the lowest in a year.
What does that mean? Think of VIX as the cost to insure your portfolio. The insurer is charging you $19 for risk that has a fair value of $10. You are effectively overpaying by a large amount.
Now, VIX is a 30 day measure so it doesn't line up perfectly, and it can change quickly, unlike typical asset insurance. But the point is that things are vewy vewy quiet.
Let's just hope that it doesn't all end with a shotgun blast to the face, as it usually does for our friend below...
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