VIX Is Low

There is an old saying on Wall Street that when the VIX is high you buy and when its low you go.  For those unfamiliar with the VIX index it is the ticker symbol for the Chicago Board Options Exchange Volatility Index, a popular measure of the implied volatility of S&P 500 index options. A high value corresponds to a more volatile market and therefore more costly options, which can be used to defray risk from this volatility by selling options. Often referred to as the fear index, it represents one measure of the market’s expectation of volatility over the next 30 day period.  So basically when fear is rampant in the market the VIX is high and when its an endless summer on Wall Street the VIX is low.  More definition at Wikipedia:  VIX link

Below (on full post) is a chart that shows the VIX over a 4 year period.  As you can imagine the VIX has been steadily declining since the market rally began last March.  The interesting point is that the VIX has gotten so low that it is approaching the low levels pre crash in 2007 and 2008.  So will the old saying hold true?  Now that the VIX is getting low is it time to go?