Key Charts - Non-Bank Financial Intermediaries
What the VIX Tells Us About Erratic Markets
- The VIX (S&P 500 Volatility Index) and the SPX (Standard & Poor’s 500 Index) have an inverse relationship.
- The SPX saw a wild week of trading in late August, when stocks plunged 3.9 percent on the 24th and rose 3.9 percent two days later.
- During the week of August 24, the VIX was at its highest, a level that had not been seen since the financial crisis
Sources: Bloomberg, Milken Institute.