The VIX Doesn’t Show the Real Volatility We All Face
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| By Jim Nelson |
Our editors host regular live events for their members to update them on the market, their portfolios and their outlooks for what comes next.
These also include Q-and-A sessions, where members ask questions and get live, uncut answers.
Those are usually the most interesting parts of these exclusive events.
Sean Brodrick hosted one of these earlier this week for his Supercycle Investor readers.
One of the questions he was asked has stuck with me ever since: “Is the VIX dead?”
If you don’t pay too much attention to the nerdy side of investing, the VIX is the CBOE S&P 500 Volatility Index.
It tracks how large of a move the S&P 500 is expected to make going forward — up or down.
The math behind it is complex. But the simple explanation is that it is calculated based on index option trading.
And that shows how much volatility option traders are pricing into the market at any given time.
The average VIX level over its 30-plus-year history is 20.
I’ll show you where it stands now in a moment.
First, consider what’s going on in the market and the world right now.
We have two major ongoing wars — one in Europe, another in the Middle East.
Both have sent energy and other commodity prices through the roof since they began.
The Fed just hiked rates for the first time in three years because of the high inflation (partially caused by the wars).
We’re in the peak period leading up to a midterm election in the U.S. that could divide the government between the two parties.
Other elections in Europe have already started shifting power and could continue to do so.
We have ongoing trade wars with historical allies and foes alike.
The U.S. federal debt hit $40 trillion just a few weeks ago for the first time ever.
And now, a few lead developers of AI are saying it could kill us all by the end of the decade.
So, doesn’t that point to a highly volatile market?
The VIX says no:
As you can see, the index only spiked above its historical average a few times this whole year, mostly in the early months of the Iran War.
So, is the VIX dead?
It might not be a perfect measuring stick. And it might not show every bump in our path right now. But that can change in a hurry.
Volatility itself exists even still. And on Monday, Nilus Mattive will show Weiss members how to turn that volatility into income — with or without a breakout in the VIX.
Grab your spot ahead of this income-system reveal.
As is custom, Nilus also kicked off this week’s large list of articles here at Weiss Ratings Daily.
Here’s the rundown …
Nilus shared a personal story from his experience that terrible day 25 years ago and the perspective he gained from it.
Your Wallet Is Screaming. Here’s What to Do!
While we’re all feeling the pinch of higher prices, Sean Brodrick has a way to profit from them.
Where to Find Profits & Protection Before Q-Day
Q-Day is coming sooner than most think. Chris Graebe is already plotting how to profit ahead of it.
Why Hospitals Can’t Treat Cybersecurity as an Afterthought in 2026
The rise in cybercrime stretches even into our healthcare systems. But smart actors are already on the case.
The AI Cybersecurity Arms Race Is Upon Us — Here’s How to Play It
Along with cybercrime, there’s a boom in cybersecurity. Sean has a way to play the defense side of cyberattacks.
How to Play the Sixfold Increase in Quantum Funding
Quantum computing will be the biggest jump in both cyberattacks and cybersecurity going forward. Chris gives you an ETF that is ahead of the game.
You Saved for Retirement. But Did You Plan for the Taxes?
David Phillips looks at one of the most ignored questions when planning for retirement. He has the answers to it, too.
The Fed Hiked Rates. So Why Are Markets Celebrating?
With the Fed now hiking rates, Sean looks at a group of stocks set to most benefit.
Profit from the Hidden Power Crisis in AI
AI’s biggest problem isn’t a backlog of chip orders or permitting for new data centers. Sean dives into what it really is and how to invest now.
Have a great weekend!
Jim Nelson
Managing Editor, Weiss Ratings Daily
