Feb 25, 2020
Market Volatility Exacerbate
It measures the expected price fluctuations in the stock market and the volatility indicated by the S&P 500 index options. Usually when VIX goes up then the markets go down and vice versa. High VIX readings mean investors see significant risk that the market will move sharply.
The financial markets took a hit with a global sell-off. Europe is facing a major coronavirus outbreak, with Italy eurozone’s third largest economy locking down 12 towns with more than 50,000 people and 150 cases of infection. European automaker’s stocks dropped down by negative sales forecast and a big fall in the European indices due to the concerns. BMW declined by 5.2 % while Volkswagen is down 3.5%. The German DAX which is a barometer of the Eurozone economy declined -4.2%. However, investors still might see the current drop as a buying opportunity and another dip to buy in an uptrend.
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