Why is VIX called “the fear index”?

210 viewsEconomicsOther

I’ve read many places that the VIX index is “the fear index” of the stock market. Nobody ever goes any deeper than that. I get that it’s a complex computation based on the change in price of a lot of stocks, and that it roughly correlates to volatility in the market. But “fear”?

In: Economics

6 Answers

Anonymous 0 Comments

You’re trying good responses here.

But, you should look at VIX versus the recession/crash over time. Once the vix gets over 24, strange things start happening.

You are viewing 1 out of 6 answers, click here to view all answers.