Thursday, 15th November 2018
Certain of one thing in these uncertain times….
‘One should never disregard it. It is the leading fear gauge. It scares the hell out of investors when it moves….’
That’s what Stephen Innes said earlier this week….
He’s the Head of Trading for Asia Pacific out in Singapore. And he’s talking about the VIX – or the CBOE Volatility Index….
2018 is the year that volatility returned to global stock markets – with a vengeance….
- Spooked ahead of Christmas….
Back in February the reading on the VIX was 29.06….
What that figure told us is that stock market investors were more fearful in February 2018 than they had been at any time since the last global financial crisis almost a decade earlier….
And that feeling of fear was all-the-more shocking because it suddenly spiked after a year of relative calm – a 12-month period of supine investor complacency….
Let me be clear, the markets are not experiencing those February levels of fear right now. Not quite….
But a current VIX reading of 21.25 tells us that stock market investors are plenty spooked as we head towards Christmas – and not just in the US and the S&P 500 index that the VIX reading is most-closely associated with….… Click here to read more