The volatility index has stayed inside a narrow band despite a Federal Reserve rate increase on September 16, which suggests markets are calm. The TSX, however, is measured by many investors against its August 25 closing high. Prospect theory holds that a shortfall from such a reference point is coded as a loss and weighted about 2.25 times a gain of equal size, and the index closed lower on 12 of 22 sessions.
This chart is presented for general informational purposes only and does not constitute financial, investment, tax, or legal advice. Figures reflect the source and period indicated and may no longer be current.
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