2024-07-21 22:35:33 +0300
Goldman Floats Case for Lower VIX Even in Event of Recession
Bloomberg
By Isabelle LeeA recent bout of volatility in US equities has prompted some traders to think Wall Street’s so-called fear gauge should be higher. For Goldman Sachs Group Inc., that isn’t necessarily the case.
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In fact, strategists led by Rocky Fishman recommend investors buy puts on the Cboe Volatility Index, effectively betting on relative calm in coming months. The VIX, a gauge of cost for S&P 500 options, historically tends to move in the opposite direction of the equity gauge 80% of the time. At one level, the team’s prediction for lower VIX implies a call for higher share prices.
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