That Quick Post-Volmageddon VIX Drop May Not Occur This Time
- Wells Fargo points to lack of volatility-product implosion
- Tallbacken sees price swings staying around ‘for some time’
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The Cboe Volatility Index closed at nearly 40 on Thursday, and some market watchers are saying high levels might stick around a bit longer than in past VIX spikes.
When Wall Street’s “fear gauge” spiked in the volatility-induced meltdown of early 2018, it closed at 37.32 on Feb. 5 but was back down to 15.80 by Feb. 26. By March 9, it closed below 15. But at that time, a number of volatility-linked products exacerbated the swings -- and once they were out of the picture, markets were able to calm down relatively quickly.