The above chart is the VIX Volatility index or better know as the fear index. Monday’s share market rout caused volatility to rise to levels seen during Brexit and the Greek Debt Crisis. It pushed past the 40% mark before settling around 35%. Levels are still quite elevated. For much of 2017, the VIX remained at extremely low levels. Because investors crave volatility particularly hedge fund managers, so broking houses invented stocks that allow investors to profit by twice the gain of the VIX on a given day or twice the loss of the VIX if it goes down. At the time of writing, the VIX Index stands at 33.46% up 20%.

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