The Great Stabilization
The VIX has touched a 5-year low, signaling a profound shift in market sentiment. The "soft landing" orchestrated by central banks globally appears to have succeeded, with inflation anchoring at 2% while employment remains robust.
What Low Volatility Means for You
While a calm market is generally positive, it often precedes a shift in leadership. Investors should use this period to rebalance portfolios, taking profits from high-flyers and rotating into undervalued value sectors.
12.5
Current VIX Level
Caution is still advised. Geopolitical risks remain the primary wildcard that could spike volatility unexpectedly. hedging strategies using cheap options are currently attractive.