FX Empire: What October Market Volatility Taught Us - Part 1
October was an explosive month for Wall Street with the VIX (volatility index) hitting levels not seen since 2011. Often called the “Fear Index,” the VIX reflects market anxiety, trepidation, and overall investor angst. Unfortunately for many market enthusiasts, volatility has become the new norm as stocks have embarked on a series of see-saw days and unsettling nights. There have been big gains and massive losses, steep spirals and soaring averages, endless talk of a correction and an onslaught of global influences that we have yet to fully understand or evaluate.
So what drives volatility?