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What We Know about Market Crashes

Erik Kobayashi-Solomon

February 9, 2018

Time heals all wounds, but the wounds of the recent market drop as evidenced by elevated option premia are still fresh. The so-called “Fear Index,” the VIX, traded down to 28 at yesterday’s close, compared to the sub-10 it was recording just a month ago. As the market dropped, pundits rushed into TV studios to …

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