They say March comes in like a lion and goes out like a lamb. I'm not sure about the current weather forecast, but for financial markets, that sounds exactly right - with the part about the lamb still merely hopeful at the moment. Several factors have combined to push the market's worry barometer - also known as the Chicago Board Options Exchange Volatility Index (VIX) - dramatically higher in recent days. This indicates that investors are extremely uncertain about the future direction of markets. And CNN's Fear and Greed Index of investor sentiment dipped to 22 in recent days, putting it in the "Extreme Fear" region. Just a week ago, it was at 47 - solidly in the Neutral zone. So what's going on? Several things, really. |
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