VIX/VIX3M Ratio Chart

A favorite ratio of mine has reached the low end of its range.
The sentiment ratio which illustrates complacency and suggests a contrarian stance is warranted.
Like all contrarian metrics, betting on mean reversion typically comes to fruition eventually, but tells you nothing about when that will occur.
That being said, I try to be as 'timely' as possible though when I make alternative posts.

What's Going On?
The market is taking a leap of faith by investors who have a trust in policymakers to
maintain the flow of stimulus, and for things to return to some form of normalcy.
Investors are taking a leap of faith from here, clearing the chasm of economic realities.
Fiscal life-support measures, Stimulus measures, and investor faith that's stopping the
whole thing from unravelling.

What Should I Do?
Be mindful of these charts, and monitor the progression of them.. because if there's
any sign that the narratives supporting investor faith start to dissipate or disappear,
or that faith gets shaken, then we could get a bit of an unravelling here. In the mean
time, Central Banks have our back.

Best,
RH