TECH - VIX At Pre-Pandemic Low: Is Wall Street's Fear Gauge Mispricing Risk Of Downturn? | Benzinga
The VIX index has hit its lowest point since before the pandemic, just as equity markets are trying to regain their 2023 highs. Is this telling us that when it’s bad for the VIX it’s good for stocks?
Analysts have written volumes on how to interpret the VIX, or the CBOE’s Volatility Index, and sometimes called the Wall Street “fear gauge.” Generally, it is seen as a measure of market volatility. The higher it moves, the higher the level of uncertainty in the equity markets, whereas equities tend to thrive when it is at its lowest points.
On Monday, the VIX moved a little higher — up 2.5% at 12.77 — but this remained well below its long-term average around 20. At its high in 2023 it peaked at 30, during the early days of the pandemic it spiked to 85.
Among the riskier stocks to have performed well during the rally of the past month, Carnival (NYSE:CCL) whose debt ...