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Wall Street’s worry gauge closed Friday at its lowest point in more than three years, suggesting the stock market has entered a new low-volatility regime after the 2022 market.
The fall of the VIX below point 15 comes as the S
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A new bull market begins when an index jumps 20% from the lowest close of its bear market. The Nasdaq 100 already entered its bull market at the end of March.
According to DataTrek Research co-founder Nicholas Colas, the VIX’s decline to pre-pandemic levels indicates that the economy and market are closer to pre-pandemic levels than they appear.
“We probably wouldn’t do much with what is a one-day data point, but to see the VIX fall to its pre-March 2020 levels is indeed a remarkable progression and deserves attention,” Colas said in a note Monday.
Carson Group lead market strategist Ryan Detrick told Insider on Monday that the VIX disruption is a signal that deserves to be embraced by investors, rather than combated.
“What most investors tend to do is that periods of low volatility can last for years, just as periods of peak volatility can last for years. . . We believe this low volatility deserves to be noted as another sign that we are moving away from the downtrend. 2022 diet,” Detrick said.