Fund managers are barely paying attention to the drama in Washington, because they say it's impossible to make bets ahead of a debt resolution. And nearly every fund manager expects a resolution, even if it goes down to the wire.
"I'm still of the camp that this will get solved at the very last minute, and until then, there's nothing to do," a manager of a $6 billion hedge fund who requested anonymity said Monday morning.
"But, if nothing gets solved by October 17th and the Dow drops 1,000 points, I'm a buyer," he added.
Several other fund managers echoed his sentiments Monday. Few, if any, intend to make any trades with the debt ceiling in mind. That is unless Congress actually lets the U.S. default.
Should that terrifying prospect play out, most hedge funds managers expect the stock market to fall precipitously. That crash or correction would offer a reason to buy stocks... immediately.
Still not everyone is as calm.
One manager who invests in several hedge funds on behalf of his clients wrote via email: "My managers aren't concerned, but I am."
He worries that everybody is too complacent right now and that the market could get caught off guard. For now, he hasn't found many people in the investment world who share his angst.
Remember the VIX? Probably not. Wall Street's measure of volatility has been pretty forgettable in 2012.
Not on Friday. The CBOE Volatility Index (VIX) spiked by as much as 10%. The index itself was particularly volatile Friday, closing up just 1%.
Congress and its inability to come together over the fiscal cliff wasn't the sole trigger of the heightened volatility. Friday was also quadruple witching day -- one of four trading days MOREMaureen Farrell - Dec 21, 2012 2:37 PM ET
|Upgrading from Windows 7 or 8? You'll love Windows 10|
|Rolling Stone sued by UVA frat members over bogus rape story|
|Windows 10 is seriously great|
|Oil prices have plunged nearly 20% this month|
|Facebook earnings: It's now the world's most-used tech product|