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Saturday, January 17, 2009

Are Fear, Uncertainty and Volatility Declining?

EXHIBIT A:
The chart above shows Google's search volume index for the phrase "Great Depression" over the last 12 months. Despite a recent uptick, the overall trend since October is downward. Interestingly, notice the same overall pattern over the last year, and the downward trend since October in the CBOE Volatility Index:

EXHIBIT B:

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