Different people interpret the VIX different ways. For some, a low VIX and dropping volatility signal a good time to invest, basically seeing the overall volatility and worry come down in the market. For others, it is a sign of complacency. Both are right. When you look at last year’s low VIX persistent throughout the year, coupled with high returns of close to 20% for the S&P 500 (SPY) and close to 30% for the Nasdaq Comp (QQQ), one would conclude that lower VIX = better. But in January when the VIX bottomed below 9 before ballooning to over 50 in February, low VIX = worse. So which one?