The stock market’s “fear gauge” has reached its lowest point since the onset of the pandemic.
Volatility, a critical factor influencing traders, investors, hedge funds, investment bankers, and essentially everyone on Wall Street, serves as a significant constraint.
During periods of volatility spikes, these market participants tend to scale back their activities, but during calmer times, they are inclined to allocate more capital, Axios reported.
If the current subdued levels of the VIX (Volatility Index) persist, one can anticipate a surge in Wall Street activities, spanning from new bond issuances and IPOs to increased lending by banks.
The current low VIX levels are signaling a potential shift in the proverbial bull market, possibly setting the stage for an end-of-year surge.
Written by B.C. Belgey
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B.C. Begley 