How Volatility Indexes Assist Investors in Identifying Bear Market Bottoms

Reported 2 days ago

Volatility indexes, such as the VIX and VXN, serve as essential tools for investors looking to identify potential market bottoms during bear trends. These indexes indicate investor sentiment by measuring option prices and tend to spike at times of heightened fear, often coinciding with significant market lows. While not infallible, they provide valuable insights that can enhance investment strategies when interpreted correctly.

Source: YAHOO

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