“’Investors simply are not assigning high probabilities to catastrophic outcomes,’ said Garrett DeSimone, head of quantitative research at data provider OptionMetrics.

To be sure, even if the economy does tip into a recession as the Fed tightens monetary policy, few investors are predicting a protracted downturn. Consumer spending has remained relatively resilient, and the labor market has been particularly robust, with the unemployment rate hovering near a 50-year low.”

Featuring insight from OptionMetrics’ Garrett DeSimone, Ph.D., the full The Wall Street Journal article, “Investors Are Forgoing Crash Insurance in Options Market,” is available to read below.