NEW YORK: Investors are worried the U.S. stock market has rallied for six months without significant correction but they're not ready to call it quits, according to a Reuters report on Friday, Feb 18.
The CBOE Volatility Index VIX, Wall Street's so-called "fear gauge", was on track to end the week about 5 percent higher even as the S&P 500 index rose to twice its value from just two years ago. The index is usually inversely correlated to the S&P and a rise in the VIX typically means a drop in the stock market.
"There is definitely high anxiety because everyday it looks like the market is at the top and it's going to have to correct," said James Dailey, portfolio manger of TEAM Asset Strategy Funds in Harrisburg, Pennsylvania.
"Are we due for a pullback? Yes. When? that's the big question. Money just keeps flowing into equities."
The VIX's overall level of 16.51 is still historically low but substantially higher than recent volatility. That suggests investors see more share gyrations in the weeks ahead.
BIGGER CORRECTION?
"The 3-5 percent correction that the market had anticipated might now turn into a 5-10 percent one."
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