4 December 2023
The Vix, known as Wall Street’s “fear gauge,” has dropped to a four-year low of 12.4, suggesting investor complacency about the Federal Reserve managing inflation without economic downturn. This decrease in volatility coincides with a strong S&P 500 performance and a recent decline in U.S. inflation. However, analysts warn of potential future market instability, as longer-term forecasts indicate higher volatility ahead. Concerns also exist about overlooked risks in areas like commercial real estate and credit delinquencies.