🚨U.S. stocks are unusually calm! This kind of state has only happened once in 34 years!
As of September 4, the S&P 500’s VIX had closed in the 14–17 range for 25 consecutive trading days, setting the longest record since May 1992.
Even more striking, the S&P 500 has gone 26 consecutive trading days without a single-day drop of **-1%** or more.
📌Looking at the data together:
Low VIX volatility: 25 days → the longest since 1992
No big drop in the S&P 500: 26 days → unusually calm market
So the question is: the calmer the market, the more easily investors form the illusion of “low risk.” Once macro data, rate expectations, or geopolitical developments change, volatility may be repriced quickly.
Right now, the recent jobs data has just reinforced the market’s focus on Federal Reserve policy, and September may actually bring even larger volatility factors.
Low volatility does not mean no risk; sometimes, what truly deserves caution is precisely when things are “too calm.” 👀$ZEST $CLOU.ETF $SKDD
As of September 4, the S&P 500’s VIX had closed in the 14–17 range for 25 consecutive trading days, setting the longest record since May 1992.
Even more striking, the S&P 500 has gone 26 consecutive trading days without a single-day drop of **-1%** or more.
📌Looking at the data together:
Low VIX volatility: 25 days → the longest since 1992
No big drop in the S&P 500: 26 days → unusually calm market
So the question is: the calmer the market, the more easily investors form the illusion of “low risk.” Once macro data, rate expectations, or geopolitical developments change, volatility may be repriced quickly.
Right now, the recent jobs data has just reinforced the market’s focus on Federal Reserve policy, and September may actually bring even larger volatility factors.
Low volatility does not mean no risk; sometimes, what truly deserves caution is precisely when things are “too calm.” 👀$ZEST $CLOU.ETF $SKDD
