The Cboe Volatility Index (VIX) jumped to a three-month high of 18.46 yesterday as the Q2 earnings season began with lacklustre reports from Tesla and Alphabet, triggering a sell-off in the US stock market.
VIX under 20 isn’t a warning… The stock market valuation indicator I agree with: stocks are a bit over valued right now. But over valued just means we need a correction… not whether it will be a mild or severe one.
What’s more troubling is the market reacting already to nonsense trump comments. From the caption in the linked article:
The latest market sell-off was partly triggered by former President Donald Trump’s comments on Taiwan and tariffs.
Does no one else remember the dumpster fire that was the markets jumping at every comment and policy flip-flop during his four year term? The same volatility indicator (VIX) regularly jumped over 20 after some dumb trade policy comment…
I find it ridiculous that they are reacting to something said by a convicted felon who isn’t yet involved in US government policy and is known for both lying about everything and doing the opposite of what he says on a regular basis.
Market indicators are horoscopes for capitalists. An economist is just a historian with a blue orb.