VIX possible long?As equity markets continue to approach all-time highs and expectations of interest rate cuts increase, market sentiment remains highly optimistic. This environment of "good news" characterized by strong performance in equities and the anticipated easing of monetary policy is likely to suppress volatility in the short term, potentially pushing the VIX down into the 12–15 range.
However, this period of euphoria may mask underlying risks. Stock valuations appear stretched, and the crypto market is exhibiting signs of overheating. If corporate earnings begin to miss expectations or if signs of economic slowdown emerge particularly if the economy shows signs of overheating before stabilizing market sentiment could shift rapidly. In such a scenario, volatility may spike again, with the VIX potentially rising back into the 20–25 range as uncertainty returns and risk appetite diminishes.
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
