The Chicago Board of Exchange's volatility index - the VIX - measures the volatility of options
on the S&P 500, and the IAI measures Site Edit's readers' interest in topics associated
with investor anxiety.
Remarkably, from these two completely different worlds, the two indices are highly correlated.
When traders see volatility in options - another way of saying uncertainty in markets -
Site Edit readers are simultaneously researching topics that pertain to weak points in the
of Site Edit's visitors feel confident about the U.S. economy
Do you feel confident about the US economy?
Do you think the U.S. Stock market will be higher in 6 months than it is today?
Do you think your income will increase within the next 12 months?
Do you feel like you are on track for retirement?
Do you feel confident in your ability to make a major purchase (home, car, etc)?
Collecting data on the interests of millions of people was difficult before the advent of the Internet. Social
scientists either had to talk to a sample of respondents to get a picture of the public mood, or they could use
prices in the market (like the stock market) as a proxy. Site Edit has collected data on the interests of 21
million monthly users going back 15 years opens a new window of insight onto the mood of our collective mind.
(Read the whole story at The Site Edit Anxiety Index.)