Volatility Risk Indicators Normalize After Recent Fluctuations
The market experienced a complete reversal with implied volatilities retreating last week across various asset classes. This adjustment followed positive tech earnings and rising expectations for Fed rate cuts, along with optimism surrounding possible breakthroughs in U.S.-Russia talks.
Utilizing a structured framework, we analyze movements within the VIX index. Less than half of the latest changes were anticipated, shedding light on investor behavior and market dynamics.