(Harvest) Thus far in 2017, the CBOE VIX Index has remained well below its long term average of 19.6. However, this does not mean the environment has been low risk. In fact, the political uncertainty and gridlock emanating throughout the market has led to a divergence between two risk level sentiment measures: VIX and an alternative measure of market sentiment on volatility, the CBOE SKEW Index – otherwise known as the Black Swan Index – which presents a strikingly different picture than VIX, clouding the current risk environment.

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