Search Results for: vix

Fed Funds vs. VIX Taking into account the lag effect of Fed rate hikes on the U.S. economy, should investors expect the VIX to continue being elevated? Image: Deutsche Bank

S&P 500 and 3-Month VIX Relative to VIX (VIX3M/VIX) The 3-month VIX relative to the VIX closing at an oversold level below 1 is a potentially significant indicator of market sentiment. This can be interpreted as a sign of capitulation and possibly a contrarian bullish signal. Image: BofA Global Research

VIX Average Trend in U.S. Election Years Historical patterns suggest that the VIX tends to bottom out in mid to late August, followed by a trend of increasing volatility as the U.S. Election Day approaches, driven by heightened market uncertainty. Image: BofA Global Research

Volatility Divergence – VIX vs. MOVE The divergence between VIX and MOVE presents unique challenges and opportunities for market participants, reflecting different expectations and perceptions of risk in the equity and bond markets. Image: BofA Global Research

Sentiment/VIX Composite vs. Fed Funds During a rate hiking campaign, bullish sentiment tends to increase initially, but ultimately ends badly. Image: Real Investment Advice

VIX and Geopolitical Risk Index The VIX tends to be sensitive to geopolitical events and can serve as an indicator of market sentiment during times of heightened geopolitical risk. Image: Goldman Sachs Global Investment Research

Valuation – S&P 500 P/E to VIX Ratio When the S&P 500 valuation-to-volatility ratio is high, it suggests investors pay more for perceived market safety, indicating potential overvaluation and increased market vulnerability to downturns. Image: Real Investment Advice

Volatility – VIX/MOVE Ratio The VIX/MOVE ratio is still falling. Image: The Daily Shot

VVIX to VIX Ratio The VVIX/VIX ratio continues to rise, suggesting a period of relative complacency. Image: The Daily Shot

Volatility – VIX and U.S. 1-Year Sovereign CDS The U.S. debt ceiling circus could lead to volatility in financial markets. Image: Goldman Sachs Global Investment Research

Volatility – Percentage of Trading Days with VIX Above 20 91% of the trading days this year, the VIX Index has been above 20. Should U.S. equity investors remain cautious? Image: S&P Global Market Intelligence