With oil, base metals, gold, and stocks of all stripes climbing, it's almost impossible to find a bear market right now…
Almost impossible if you aren't watching the brutal bear market in today's chart… the bear market in volatility.
Professionals keep a close eye on market volatility with an indicator called the "VIX." This is a gauge of how much traders and investors are willing to pay for portfolio insurance in the form of protective stock options. The VIX also measures investor fear. The higher the VIX, the higher the level of fear in the marketplace.
During the late 2008 credit crisis, folks got as scared as they have been in generations. The VIX spiked to an incredible "Armageddon" reading over 80. But thanks to the government's enormous E-Z-Credit bailout program, investors are piling back into stocks, commodities, and real estate… the Dow is up almost everyday… and folks are letting the other guy worry about risk. As any seasoned investor will tell you, when nobody is worried about risk, it is precisely the time everyone should be worried about risk.
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