Hello, Subscribers!
In yesterday's Making Hay Monday, we pointed out that when the volatility index (VIX) hits the type of ultra-elevated level it touched yesterday — 60, a reading that occurs only about 0.3% of the time, otherwise known as a three-standard deviation event — markets have strong returns over the next year. In fact, they often rally on a near-term basis, though there have been at least two instances when prices fell further before rebounding.