Tag Archive: vix

Markets Don’t Agree with the Fed

The Fed’s decision to hike rates again on Wednesday was met with displeasure from equity investors. Stocks saw sharp declines even as the Fed lowered its forecast for next year from three rate hikes to two. That displeasure was on full display on Thursday, as stocks once again got absolutely rocked. The tech-heavy Nasdaq was down 3% at the lows, putting it down over 20% from its August peak. Although the index recovered a bit, it still ended the session down just under 20% from... Continue Reading

It’s Not Too Late

Stocks are continuing their recent plunge today, with the Dow Jones Industrial Average down over 600 points in mid-day trade. Market volatility, as measured by the CBOE’s VIX index, is spiking today to the mid-20s and investors appear to be getting panicky as no bottom has yet been found. The recent selling in equities could, however, be just the tip of the iceberg and a far more significant decline could be seen in the weeks and months ahead. Despite some recent positive commentary on the... Continue Reading

Remember the VIX?

There has been little in the way of market volatility in recent months, and investors appear to be growing increasingly complacent as the markets look to make fresh, all-time highs. Although markets spent some time in correction territory, they have not seen any significant declines for fresh buyers to enter. This could lead to a large amount of FOMO-or fear of missing out. This fear of missing out could take the market to some significant new heights before the bottom falls out. There has been... Continue Reading

Are Markets Topping?

The roller-coaster continues. After seeing significant selling to start the week off, stocks rebounding on Tuesday. The Dow Jones Industrial Average finished higher by nearly 400 points on the day, and investors appeared to be putting worries over a trade war behind them-at least for the day. As has been discussed in previous posts, however, there is likely something much larger brewing in the equities markets. Recent volatility, along with a significant spike in the markets fear gauge, the “VIX,” could point to a topping... Continue Reading

Another Reason to Diversify Away From Stocks

This week has certainly been one for the books. Massive swings in stocks, coupled with the largest spike in volatility ever recorded have likely put more than a few investors out of business over the last several sessions. It may get worse. The fear of inflation and rising bond yields have definitely weighed on stocks. There are other forces at work as well, however, that may be adding fuel to the fire. It’s no secret that some investors may have been making money off of... Continue Reading

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The Market’s Demise May Be Another Step Closer

The stock market continues to show strength as it remains on a decidedly upward trajectory. Recent articles in financial media have even discussed the possibility of a good old-fashioned melt-up in stocks from current levels. Although the market could certainly see further gains from current levels, eventually the stock bulls will run out of gas and things will turn. While no one knows when stocks could reverse course or even collapse, the magnitude of those declines would seemingly be increasing with each and every new... Continue Reading

Gold set to Continue Higher

Gold prices have slowed down a bit in recent action following strong gains seen in recent weeks. In fact, the yellow metal now looks poised for a run at the $1400 per ounce price level, and there really does not appear to be much standing in gold’s way. As we discussed previously, a pullback allowing some back and fill trade in gold is not only likely, but also a good thing. Markets rarely go straight up or straight down, and when they do such moves... Continue Reading

A Sea of Black Swans

Let’s be clear about something: The ongoing escalation in tensions with North Korea may be having an effect on the gold market, but is it not the primary driver of gold. Gold had a very strong session on Monday to begin the trading week before news of another missile test by North Korea hit the wires. The fact is, there are numerous potential black swans that could really derail global equity markets and drive a massive spike in risk aversion and overall market volatility. North... Continue Reading

Are Investors Ready for Market Volatility

Investors may be completely unprepared for market volatility at this point. It has been a long time since the market saw a 5% decline, and markets have not seen a significant pullback of any kind in years. This has kept a lid on market volatility as measured by the CBOE’s VIX. You don’t need the VIX gauge, however, to tell that markets have seen very little in terms of large price swings. In fact, stocks have gone sideways to higher for quite some time. Perhaps... Continue Reading

Are Gold and Market Volatility About to Explode?

With all that is going on in the world right now, the word “explode” may be a poor choice. The North Korean saber-rattling has continued, with the nation testing another intercontinental ballistic missile just days ago. This provocative action by the North Korean regime did not go unnoticed, and the U.S. along with Japan and South Korea responded with a show of force. This ongoing situation could be reaching a critical juncture, and it remains unclear how the U.S. and its allies will respond to... Continue Reading