These Two Market Indicators Are Flashing Warning Signals For US Stocks
The Cboe Volatility Index (VIX) jumped to a three-month high of 18.46 yesterday as the Q2 earnings season began with lacklustre reports from Tesla and Alphabet, triggering a sell-off in the US stock market.
https://www.ibtimes.co.uk/these-two-market-indicators-are-flashing-warning-signals-us-stocks-this-warren-buffet-stock-1725756Open linkView original on lemmy.world
3 replies
VIX under 20 isn't a warning... The stock market valuation indicator I agree with: stocks are a bit over valued right now. But over valued just means we need a correction... not whether it will be a mild or severe one.
What's more troubling is the market reacting already to nonsense trump comments. From the caption in the linked article:
Does no one else remember the dumpster fire that was the markets jumping at every comment and policy flip-flop during his four year term? The same volatility indicator (VIX) regularly jumped over 20 after some dumb trade policy comment...
I find it ridiculous that they are reacting to something said by a convicted felon who isn't yet involved in US government policy and is known for both lying about everything and doing the opposite of what he says on a regular basis.
Market indicators are horoscopes for capitalists. An economist is just a historian with a blue orb.