Barron’s: “The Stock Market Selloff Looks Scary. Watch This Sign for the Time to Buy.”
By datatrekresearch in IN THE NEWS
Excerpt from Barron's quoting DataTrek's Nick Colas:
.... "An elevated VIX reading can provide a buying opportunity—but we aren’t quite there yet, suggests a note Friday from market researcher DataTrek.
The key VIX levels to watch for are 27.3 and 35.1, which represent one- and two-standard deviations from long-term average, according to DataTrek co-founder Nicholas Colas.
In general, statistics rules suggest about two-thirds of results in a data set should fall within one standard deviation of the norm, and about 95% within two standard deviations.
In terms of the VIX, Colas writes that hitting 27.3, the one-standard deviation level, represents “a garden variety growth scare, and we think it’s likely we’ll get to that level soon"....
Full article here on Barron's.
