Usually stock prices and fear measured by the VIX trend inversely. However, during the late 90s we witnessed an unprecedented rise in both the S&P 500 and the S&P VIX.
If we are witnessing another manic period with extreme stock price overvaluation/historic margin levels then we may see stock prices and the fear index rise together.
From ’96 to ’98 both the S&P 500 Index and S&P VIX rose together.
Comments
Log in or sign up to join the conversation.