MASSACRE in the market - but VIX still below 28?

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How long till this clown blows up ?
 
This is not a massacre by any means. Wake me up when the market tanks 50-70%. That is a long ways off from these levels. Stocks are way overvalued with declining earnings, increasing inventories and layoffs just starting. Inflation is going thru the roof but, hacks on cable TV tell us, it is not so bad excluding food and gas prices. Okay, got it.
 
In Jan/Feb, people reduced exposure and/or hedged for this amount of drawdown, so VIX in the upper-20s is about right.

If/when we go down significantly further, VIX will pop because we'll be beyond most of the hedges.

Also worth keeping an eye on how VIX behaves relative to VOLQ.

How do you know this regarding hedging in Jan/Feb
 
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