{"id":89561,"date":"2024-02-01T20:19:35","date_gmt":"2024-02-02T01:19:35","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=89561"},"modified":"2024-02-01T20:19:38","modified_gmt":"2024-02-02T01:19:38","slug":"wall-streets-fear-gauge-drops-below-13-what-it-could-mean-for-stocks-over-the-long-run","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89561","title":{"rendered":"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0002767606\" role=\"document\">\n<p>Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold.<\/p>\n<p>The Cboe Volatility Index<br \/>\n        VIX<span>,<\/span><br \/>\n       a gauge of expected stock-market volatility over the coming 30 days, has been trading below the 13 mark since last Friday, when it closed at 12.46, its lowest finish since Jan. 17, 2020, according to Bespoke Investment Group.<\/p>\n<div class=\"paywall\">\n<p>High \u201cVix\u201d readings generally are interpreted as positive for stock-market returns. <\/p>\n<p>In a recent example, the Vix briefly climbed above the 20 mark in mid-October as the benchmark 10-year Treasury yield<br \/>\n        BX:TMUBMUSD10Y<br \/>\n       surged to a 16-year high of 5%, unleashing turmoil in financial markets.<\/p>\n<p>The S&amp;P 500 index<br \/>\n        SPX<br \/>\n       shortly thereafter rallied as bond yields eased back, putting the equity benchmark on pace for a 8.6% gain so far in November, according to FactSet data.<\/p>\n<p>However, stock market performance lately has been largely driven by bond yields and expectations about the Federal Reserve\u2019s likely next moves on interest rates. <\/p>\n<p>Still, Bespoke Investment Group analysts wanted to compare stock-market returns and Vix extremes since 1992, with a focus on periods when the fear gauge had been flashing unusually low, or uncommonly high, readings. <\/p>\n<p>They found that when the Vix was trading in the lowest five percentile range, relative to its two-year range, that returns for the S&amp;P 500 averaged almost 7% a year later. Likewise, when the Vix was right near two-year highs, forward one-year returns averaged 13.8%. <\/p>\n<p>However, they also found \u201ca variance of returns that you could fly a wide-body jet through (rather than a truck),\u201d when the Vix was near its two-year highs. <\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<p>          <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>The blue dots show one-year returns, varying from a gain of 75% to a loss of 47% when the Vix was at extremely high levels.<\/p>\n<p>Low Vix readings also can be a sign of dangerous levels of market complacency, which can come back to bite, as was the case in March 2020 when the U.S. adopted widespread COVID lockdowns that tanked financial markets.<\/p>\n<p>Still, \u201cthe variance of returns following periods of a high VIX reading have been significantly greater than the variance of returns following low readings,\u201d the team wrote, in a Tuesday client note.<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/wall-streets-fear-gauge-drops-below-13-what-it-could-mean-for-stocks-over-the-long-run-822149de?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold. The Cboe Volatility Index VIX, a gauge of expected stock-market volatility over the coming 30 days, has been trading below the 13 mark since last Friday, when it closed at 12.46, its lowest finish since Jan. 17, 2020, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":89562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-89561","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold. The Cboe Volatility Index VIX, a gauge of expected\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=89561\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold. The Cboe Volatility Index VIX, a gauge of expected\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=89561\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-02T01:19:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-02T01:19:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2024\/02\/1706836776_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=89561#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=89561\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run.\",\"datePublished\":\"2024-02-02T01:19:35+00:00\",\"dateModified\":\"2024-02-02T01:19:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=89561\"},\"wordCount\":375,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=89561#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=89561\",\"url\":\"https:\/\/ifintechworld.com\/?p=89561\",\"name\":\"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2024-02-02T01:19:35+00:00\",\"dateModified\":\"2024-02-02T01:19:38+00:00\",\"description\":\"Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold. The Cboe Volatility Index VIX, a gauge of expected\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=89561#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=89561\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=89561#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run. | iFintechWorld","description":"Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold. The Cboe Volatility Index VIX, a gauge of expected","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=89561","og_locale":"en_US","og_type":"article","og_title":"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run. | iFintechWorld","og_description":"Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold. The Cboe Volatility Index VIX, a gauge of expected","og_url":"https:\/\/ifintechworld.com\/?p=89561","og_site_name":"iFintechWorld","article_published_time":"2024-02-02T01:19:35+00:00","article_modified_time":"2024-02-02T01:19:38+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2024\/02\/1706836776_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=89561#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=89561"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run.","datePublished":"2024-02-02T01:19:35+00:00","dateModified":"2024-02-02T01:19:38+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=89561"},"wordCount":375,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=89561#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=89561","url":"https:\/\/ifintechworld.com\/?p=89561","name":"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2024-02-02T01:19:35+00:00","dateModified":"2024-02-02T01:19:38+00:00","description":"Wall Street\u2019s \u201cfear gauge\u201d hasn\u2019t been this low since before the COVID crisis of 2020 took hold. The Cboe Volatility Index VIX, a gauge of expected","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=89561#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=89561"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=89561#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Wall Street\u2019s fear gauge drops below 13. What it could mean for stocks over the long run."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/89561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=89561"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/89561\/revisions"}],"predecessor-version":[{"id":89563,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/89561\/revisions\/89563"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/89562"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=89561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=89561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=89561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}