VIX: Stock Market Fear Gauge Update

VOLATILITY INDEX

By Staff Reporters

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DEFINITION: https://medicalexecutivepost.com/2024/05/30/what-up-vix/

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UPDATE

The VIX soared to 60.13 last Monday before plummeting all the way to 33.76 on Wednesday, the day after the president paused tariffs. But while the VIX has since settled down a bit, investor fear is still high. The VIX closed above 30 for 10 straight trading sessions and the last time that happened was during the bear market back in October 2022, according to MarketWatch—not exactly a comforting comparison.

Then again, just because fear skyrocketed last week doesn’t mean the markets will tank in turn. “Since 1997, there have been 11 times the VIX spiked above 45—and 10 out of 11 times, the S&P 500 was higher four months later by an average of +6.4%,” noted Austin Hankowitz in the latest edition of the Rich Habits newsletter.

Finally, the VIX closed above 30 Thursady as tariff talk and monetary policy pivots keep investors on their toes. But while worries might keep investors on the sidelines, some on Wall Street are taking this opportunity to be greedy while others are fearful.

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