This Needs to Happen for a True Market Bottom, According to Experts

As the broader market continues to sink, investors are eagerly awaiting a bottom and hoping that at the very least it's right around the corner. After all, the S&P 500 is down roughly 21.5% this year.

But with a lot of anxiety about a looming recession and the possibility of stagflation, I don't think anyone can say with certainty whether or not the market has bottomed yet. Here is one thing that will need to happen for the market to truly bottom, according to experts.

One way that investors gauge fear in the market is through a benchmark called the Chicago Board Options Exchange Volatility Index (VIX), or the VIX for short. This metric uses implied volatility in the options market to show how much investors believe the S&P 500 will move in the near term based on a 30-day forward projection. The VIX tends to rise as the S&P 500 falls. So when the VIX is high, that means investors are fearful and there is likely to be a lot of market volatility. A lower VIX means less volatility and less fear among investors.

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Source Fool.com