VIX Volatility Index

VIX Volatility Index

Source: Thomson Reteurs Datastream, 01 September 2015
Note: The VIX is a measure of implied volatility of the S&P 500, often referred to as the ‘fear index’. The VIX represents one measure of the market’s expectation of volatility over a 30-day period.

  • An extended period of relative calm in equity markets was brought to an abrupt end last week: the VIX volatility index hit levels not seen for some years
  • This violent spike in volatility was accompanied by sharp falls in equity markets
  • Though the VIX has retreated from last week’s three-and-a-half-year high it remains at above average levels

Question for your clients

  • Is your portfolio diversified enough to navigate periods of market volatility?

To help start the conversation:

CARS ref: RSM-1849