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What does the VIX do when the Federal Reserve meets? We take a look...

Jun 18, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

VIX verusus Fed Funds Rate since 2000

vix vs fed funds

 

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • We took at look at the Fed Funds rate going back to 2000 and compared it the level of the VIX over the same period 
  • The graph above is the result and, after analysing it, we highlight the following
    • Volatility is associated with rising and fall interest rate  regimes
    • This runs contrary to the assumption that volatility falls and stocks rise when interest rates increase

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS