Business Insider: “Recession indicators are flashing and Wall Street’s fear gauge suggests stocks haven’t hit bottom. Here’s what you want to know.”By admin_45 in IN THE NEWS
Excerpt from Business Insider quoting DataTrek's Nick Colas:
.... "But it's not just bonds that are flashing a warning. The stock market's fear gauge is off, too, according to DataTrek.
In a Thursday note, DataTrek co-founder Nicholas Colas said the VIX's current reading of about 26 was too low, signaling stocks haven't bottomed.
"A VIX below 28 in the current macro environment seems like the wrong price to us, even if it is above its long run average," Colas said. "The worst-case scenario is that it reflects the beginning of a slow grind lower for corporate earnings. Not enough to shock, but still enough to erode investor confidence"....
Full article here on BI.