A Higher VIX Points to Higher Stocks?

I’m generally very skeptical of any attempt to tie VIX levels to equity returns, but this caught my eye:

The VIX has closed above 40 a total of 166 times since it began on Jan. 2, 1990, data compiled by Bloomberg show. Adjusted to group together periods when it fluctuated around that level over 30 days, the S&P 500 returned 3.2 percent in the next three months and 19 percent over the next year, the data show.

Posted by on October 3rd, 2011 at 11:08 am


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