Troy's Lyon: Investor complacency reaching multi-year highs

Sebastian Lyon, manager of the Troy Trojan fund, has warned investors are becoming more complacent than they have been at any point since the financial crisis erupted, leaving them vulnerable to a shock event.

Lyon (pictured) pointed to the multi-year low levels of the VIX index, which expresses a market estimate of future volatility of the US stock market and currently stands at its lowest level since February 2007. "Investor complacency levels are reaching multi-year highs as reflected in the multi-year lows of the VIX (or fear) index," the manager said. "When investors just see blue skies the question we are often asked is what could be the catalyst for sending stock markets off course from their steady, relentless rise? The answer: an unpredictable exogenous shock or geopolitical risk."...