It May Be a Bear Market, But It’s Not a Panic. That’s Worrisome
- There’s more to this drop before stocks pick up again: Gokhman
- Probably more downside right now than there’s upside: Mullaney
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It’s been hard to watch, impossible to predict and a nightmare to trade. But has the S&P 500’s slide been an unqualified panic to date? By some measures no, and that might bode poorly for equities in the near term.
Even with the US stock benchmark plunging 20% from a record for the first time since March 2020, trading volume has been pretty average and the Cboe Volatility Index is below this month’s highs. Meanwhile, the Cboe SKEW Index -- implied volatility for bearish S&P 500 put contracts relative to calls -- is close to two-year lows.