Market Extra: Is Wall Street’s ‘fear gauge’ signaling that investors are getting too complacent?

Some have been worried about complacency gripping Wall Street. A complacent market, as the theory goes, is vulnerable to being sucker-punched by seen and unforeseen forces, potentially leading to a precipitous plunge.

There is some cause for concern. Wall Street’s so-called fear gauge, the CBOE Volatility Index VIX, -3.56% closed at 12.21 Wednesday and has been hanging around multiyear lows for weeks (see chart below).

VIX hovers near all-time lows.

Those moves have come as stocks notched a trifecta of record closing highs on Thursday and again on Monday.

Meanwhile, the yield on the benchmark 10-year note TMUBMUSD10Y, -1.20% is trading around 1.55%, after having been pushed to record lows by demand for richer yields as much as by worries about the health of the global economy.

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