VIX analysis – market fear measurement
Utilizing the VIX index provides a precise gauge of investor anxiety by quantifying expected fluctuations in S&P 500 options over the next 30 days. Elevated readings typically signal heightened concern about potential downturns, reflecting risk premiums demanded by traders. For instance, during Q1 2024, spikes above 25 corresponded with increased geopolitical tensions and inflation worries, … Read more