Fear vs Fear — 2009 / 2010 wins

When updating the chart below, where the price and normalized volume of SPY from 2003/2004 intertwines with the SPY of 2009/2010, I noticed one area of consistent difference between the two time spans—volatility.   Using the VIX index as a proxy for actual volatility, the ’09 / ’10 values have averaged about 40% higher than the ’03 / ’04 bull market.   On the slight …

Read moreFear vs Fear — 2009 / 2010 wins

FAQ on VIX, the “Fear Index”

Why do they call the VIX Index the “Fear Index” or “Fear Gauge” Because the VIX almost always goes up when the market goes down. The scarier the decline the higher the VIX tends to go. In the worst part of the 2008/2009 bear market it went as high as 80. In strong bull markets it historically bounces between 10 and 15. How can I …

Read moreFAQ on VIX, the “Fear Index”