CBOE volatility index (VIX)
The graphic above shows that we’re approaching levels last seen since the height of the Covid pandemic. But the intraday spike during the market panic on 5 August last year actually touched 65 at the time. In any case, that’s just technicality speaking. The point here is that market volatility and uncertainty is surging, thus leading to the exacerbated moves we’re seeing across the board.
If anything, this is a good fear gauge so to speak and it highlights the sense of panic in markets. As we start to see heightened levels of anxiety, it might be a good reminder to start to slowly think about buying value and selling hysteria.
We’re nowhere near a turning point for risk sentiment yet though. But if Trump starts to announce some deals being made ahead of the 9 April deadline, it could mark a potential shift in the tides.