I asked if the VIX index was inexpensive going into the historically volatile fall months in 2026 in an August 20, 2026, Barchart article, where I concluded with the following:
The VIX is a sentiment indicator that signals when market participants rush to buy price insurance for their stock portfolios. The demand for insurance is inversely correlated with the direction of the S&P 500 and other leading U.S. stock market indices. Given the trading ranges in 2024 and 2025, the VIX could be inexpensive at levels below 20, with risk-reward favoring the upside.