The VIX has risen as the market prices in a greater cost for downside protection in the stock market. We’ll know when the market has truly moved on from the Middle East situation when put skew falls lower again.
It’s been a brief war as far as the market is concerned. The stock market is barely changed from when Israel began its offensive against Iran last week. Yields are only marginally lower, as the inflation risks from a potential sustained rise in oil prices is factored in.
