VIX

The market's "fear gauge" \u2014 measures expected S&P 500 volatility. Below 15 = calm. 20\u201330 = anxious. Above 30 = significant fear. VIX is a sentiment indicator, not a timing tool.

Why it matters

The market's primary "fear gauge." When investors are complacent, VIX is low. When they're panicking, VIX spikes. It's mean-reverting — extreme readings don't last.

How to read it

Below 15: calm, sometimes complacent. 15-20: normal. 20-30: elevated anxiety. Above 30: significant fear. Above 40: crisis-level panic. Periods of very high VIX have often been followed by strong long-term returns \u2014 but VIX can stay elevated for months while markets continue falling. VIX is a sentiment indicator, not a timing tool.

Lessons that use this term

• Implied Volatility: The Options Market's Forecast
• Volatility as an Asset Class
• VIX Curve and Variance Swaps: Why Long-Vol Products Bleed

Related terms

10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bond ETF · Bretton Woods

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