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GS: A VIX Below 11 Is A Reason To Celebrate Not Worry

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Rupert Hargreaves
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Just because the VIX is under 11 there’s no reason to panic. Historically, a VIX reading under 11 has not preceded a market decline that’s according to a research note published by Goldman Sachs at the beginning of this week.

The note, which was written by Goldman analyst Krag Gregory Ph.D. notes that while a VIX reading below 11 is rare, median S&P 500 returns three months after the VIX drops below 11 are generally positive at 2.25% historically.

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GS: A VIX Below 11 Is A...

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha