Who's smarter?

There are two primary reasons for the protracted decline in both implied and realized volatility.

Assets under management at the fund have declined 13 percent from their peak last September.

A 'melt down' scenario is somehow easier to visualize and rationalize than a 'melt up' scenario.

Looking at fund flows, the preference for bonds over stocks is clear. It's a vote on broad economic confidence, inflation and risk tolerance, says Informa's David Ader.

Bond Funds saw 22nd week in a row of inflows, but they were the smallest since mid-March.

Investors largely reverse flows from the prior week but interest perked for telecoms and industrials