Man Group CIO, Co-Inventor Of VIX, Says Low Volatility Is Not New Normal

Oh, how the world must have looked on May 16. The S&P 500 peaked its head above 2400, breaking into all-time highs, all the while geopolitical issues around the world didn’t seem to matter to investors as US market volatility, measured by the CBOE VIX index, played dead. To Man Group Chief Investment Officer Sandy Rattray, who co-invented the VIX index, it all seemed strange. In an interview in Goldman Sach’s “Top of Mind” publication released May 16, he predicted that it would end one day. Then on May 17 volatility spiked. When someone says “it’s different this time,” make…