U.S. Stocks May Lag After VIX Plunge, Bespoke Says
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The VIX dropping by almost half in the past month is a bearish sign for Standard & Poor’s 500 Index returns, according to Bespoke Investment Group LLC.
The VIX, as the Chicago Board Options Exchange Volatility Index is known, has tumbled 41 percent since May 20. In the dozen times since 1986 that it slumped 35 percent or more in 20 trading days, the S&P 500 lost 0.72 percent and 1.35 percent on average during the next week and month, respectively, and rose