Will the VIX double within a year?

Natixis pair cite a number of risks

The volatility index, otherwise known as VIX, could double within the next 12 months as a result of geopolitical tension and tightening central bank policies, according to ETF specialists at Natixis Global Asset Management.

Brett Olsen, ETF capital market specialist, and Nicholas Elward, head of business development and ETFs in the company's strategic product and marketing group, said the CBOE Volatility Index is at risk of rising higher than 20. They particularly highlighted the fact the US business cycle is in its late stages and there is US political instability, according to Bloomberg. "It stands to reason that the market will see a reversion to the mean and find the VIX trading in the 20+ range before too long," they said. Warning of equity sell-off as investors lulled into 'false sense of securi...