When headlines start mentioning the market’s fear index, many investors immediately assume a crash is coming. The index, known as the CBOE Volatility Index or VIX, tracks expected volatility in the S&P 500 based on options pricing. When investors get nervous about economic news, geopolitical tensions, or interest rates, this indicator tends to spike quickly.
Recently, the fear index has been climbing again, reflecting growing uncertainty in financial markets. But history suggests that these moments of panic can sometimes lead to surprising outcomes for investors who stay calm. So, before you make any drastic moves, here is what you need to know.
