Latest / The Bear Market Podcast with Fexingo: Surviving Downturns, Buying the Dip, and Long-Term Resilience
Why the VIX at 16 Is a Trap for Dip Buyers
The VIX has dropped below 16 for the first time in months, and the S&P 500 just hit a fresh all-time high above 7,400. But Lucas and Luna argue that the calm might be deceptive. They examine the divergence between the VIX and VVIX—the volatility of volatility—and explain why a low VIX can actually signal elevated tail risk. Drawing on the current yield curve steepening (the 10-year minus 2-year spread hit 35 basis points) and recent patterns in options positioning, they make the case that buying the dip now is different than in 2023. This episode offers a concrete framework for distinguishing…
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