MarketWatch: "Don’t breathe easy just yet: there’s more volatility ahead"

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MarketWatch: "Don’t breathe easy just yet: there’s more volatility ahead"

Excerpt from MarketWatch quoting DataTrek’s Nick Colas and Jessica Rabe:

….. “That’s the takeaway from an analysis by DataTrek Research, published Tuesday. The firm’s co-founder, Nicholas Colas, outlines moves in the CBOE Volatility Index, popularly known as the “VIX,” for its ticker, and often referred to as Wall Street’s “fear gauge.”

“VIX futures actually peak in March 2021 at 31.2, which is higher than today’s levels,” Colas writes. “All VIX futures prices through September 2021 are above one standard deviation from the long run VIX mean (27.5 is that 1 sigma level)”….

….From an even broader perspective, however, volatility may be with us for even longer. DataTrek co-founder Jessica Rabe analyzed historical crisis periods that led to market volatility. Rabe found that higher volatility after a shock takes an average of about 2 years to settle down”….

Read the full article here on MarketWatch!