High Risk for U.S. Stocks in Next 8 Days Due to VIX Surge, Warns Goldman

TradingKeyAug 13, 2024 3:31 AM

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TradingKey - Goldman's Derivatives Division has issued a new analysis advising investors to prepare for heightened market volatility over the next eight trading days. The report underscores that, despite the extreme market fluctuations witnessed in 2008 and 2020, the single-day spike of over 40 points in the VIX (Volatility Index) on August 5 is historically significant.

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【Source：Goldman Sachs；Volatility Index】

Goldman reviewed the historical performance of the VIX since 1990, noting that when the VIX fluctuates between 10 and 20 points, the S&P 500 Index typically experiences intraday swings of 5-10%. However, even on the historically significant day of August 5, the S&P 500's trading range did not exceed 3%, highlighting market anomalies.

Goldman noted that the current developments signify a disruption in the volatility market, rather than in the equity market itself. The firm also pointed out that the market is expected to remain volatile until the expiration of VIX options on August 21.

Source: Goldman Sachs

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