Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Mac (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Wall Street’s VIX “Fear Gauge” Is Sounding Recession Alarms

% of readers think this story is Fact. Add your two cents.


The Cboe (Chicago board options exchange) Volatility Index (VIX) is flashing warnings of a recession, even as cash equities race toward records.  This index is an indicator of an economic downturn and economists are warning people to “remain vigilant.”

The VIX, or Wall Street’s “fear gauge” is sending warning signs through the financial world. At just over 16, it’s implying that U.S. stocks will tend to move more than 1 percent per day over the next month. In recent years, it hasn’t lingered above this level unless equities were weakening, according to a report by Bloomberg.  Even as stocks soar, the VIX is increasing.

The higher reading belied the brisk advance of more than 2% for the S&P 500 Index over the same three-day stretch. It’s the first time implied volatility has failed to decline amid stock gains of this magnitude since 2009, when the bull market was in its infancy. The two variables tend to move in opposite directions.

During Friday’s 1.1% advance in the S&P 500, the VIX — which measures the 30-day implied volatility of the S&P 500 based on out-of-the-money options prices — also moved higher. That’s despite the weekend effect that typically sees the gauge move lower on Fridays, and the passage of a market-moving event — the May non-farm payrolls report.-Bloomberg

This is only the 11th time since 2004 that the VIX advanced while the stock benchmark rose at least 1%, according to Macro Risk Advisors derivatives strategist Vinay Viswanathan. “The options market is unwilling to lower its pricing of risk further despite impressive market strength,’’ he wrote. “The stocks up/vol up move could be a sign from the option market that while equities were performing well, there is still plenty of risk worth protecting against (especially with China trade talks/G-20 lingering on the horizon).’’

Pravit Chintawongvanich, Wells Fargo’s equity derivatives strategist, said in a note that the fierceness of market rallies is contributing to firmness in the volatility index. For the most part, U.S. stocks have taken the staircase down from a record close on April 30 and rebounded via the elevator.

The VIX is warning that these stocks are due for a pullback says Jim Cramer according to CNBC. And any pullback in this inflated bubble economy could be disastrous, creating a ripple effect of epic proportions in the overall economy.

The VIX, says Cramer, gave clues that investors then were “still afraid,” which preceded a month of “very ugly and choppy” trading in May, the host noted. “And given [Mark Sebastian’s] recent track record reading the Volatility Index, I gotta take him seriously. He’s been dead right,” Cramer said. “He’s not saying look out below, but he does say we’re going to get some turbulence.”

6 Vital Things To Do BEFORE An Economic Collapse

This article has been contributed by SHTF Plan. Visit www.SHTFplan.com for alternative news, commentary and preparedness info.


Source: https://www.shtfplan.com/headline-news/wall-streets-vix-fear-gauge-is-sounding-recession-alarms_06122019


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.