Reported about 1 month ago
The recent market turmoil, triggered by a significant drop in the Nikkei index, highlighted key misconceptions regarding the VIX, often called the 'fear gauge.' Contrary to popular belief, the VIX reflects market expectations of future volatility rather than actual fear. It serves as a means for investors to hedge their portfolios. Current market trends suggest that volatility may increase moving into the fall, raising concerns for stocks as August market shocks historically lead to subsequent downturns.
Source: YAHOO