$VIX Will History Repeat itself under 9.40 ?
I like to look at potential patterns in market cycles.
The VIX has touched 9.40 three times since 1990.
What is interesting about these dates? They all precede the build up of a financial crisis of some kind.
Take December 1993, the VIX briefly touched a low of 9.31,
3 years and 7 months later the East Asian financial crisis took place.
5 years and 8 months later the Ruble Crisis leading to Russia defaulting on its debt.
7 years and 3 months later the $QQQ hit an all time high which ended the Dotcom Bubble.
The VIX surpassed the low of December 1993, hitting 8.60 on December 2006,
10 months later the Sub-prime mortgage crisis was beginning as the $SPY peaked.
1 year and 9 months later Lehman Brother collapsed.
I know the VIX as the fear index. In respect to that could it be that a lack of fear in the financial markets drives poor risk-management and inevitably leads to a crisis?
The VIX has touched 9.40 three times since 1990.
- December of 1993
- December of 2006
- June 2017 to present
What is interesting about these dates? They all precede the build up of a financial crisis of some kind.
Take December 1993, the VIX briefly touched a low of 9.31,
3 years and 7 months later the East Asian financial crisis took place.
5 years and 8 months later the Ruble Crisis leading to Russia defaulting on its debt.
7 years and 3 months later the $QQQ hit an all time high which ended the Dotcom Bubble.
The VIX surpassed the low of December 1993, hitting 8.60 on December 2006,
10 months later the Sub-prime mortgage crisis was beginning as the $SPY peaked.
1 year and 9 months later Lehman Brother collapsed.
I know the VIX as the fear index. In respect to that could it be that a lack of fear in the financial markets drives poor risk-management and inevitably leads to a crisis?