Tag - VIX

Advice to the Advisors

Sheaff Brock Institutional Group | VIX | The "Fear Factor"

When Market Volatility Causes Client Fear, Cite the “Fear Factor”

The VIX, ticker symbol for the Chicago Board Options Exchange’s Volatility Index, has the nickname “fear factor.” Paradoxically, a high VIX is not necessary bearish for stocks, you can remind clients, because market volatility refers to upward movements in the market along with downward ones. What a high VIX reading does mean is that investors are seeing significant risk that the market will move sharply, whether up or down. The VIX tends to be low in “ho-hum” times, when [...]