JPMorgan Expects Stocks Volatility to Climb in 2024
- Call is for VIX to reach mid-to-high teens on soft landing
- Gauge would rise further in event of a US recession: JPMorgan
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A key gauge of stock market worry will climb in 2024 after tumbling this year to the lowest since before the pandemic struck, and the magnitude depends on the strength of the economy, according to JPMorgan Chase & Co. strategists.
The Cboe Volatility Index will “generally trade higher in 2024 than in 2023, and the extent of the increase depends on the timing and severity of an eventual recession” and potential wider swings that could curb selling of short-term volatility, the bank’s Americas equity derivatives strategists, led by Bram Kaplan, wrote in a note Friday.