Market MELTDOWN COMING: Economic FEAR index is rising, warns investment expert
A KEY signal of market volatility is starting to flash warning signs that a meltdown could be on the horizon, according to a leading investment expert.
By LANA CLEMENTS
Express.co.uk
Fri, Sep 23, 2016
The industry ‘fear gauge’ – or CBOE VIX index – has been rising since the summer when it reached its lowest level in two years, according to Adrian Lowcock, investment director at Architas.
Although the index is still relatively low, the increase in volatility is a signal that trouble is brewing.
Mr Lowcock told Express.co.uk: “The index is a measure of confidence or lack of among investors. When it is low it suggests investor’s confidence is high. This might sound counter-intuitive to an indication that a market correction is coming.
“However, markets rise when investors’ confidence is high and falls when confidence disappears.
“A low VIX score suggests investors are not very concerned about markets.
“However the VIX has been rising in September and with it markets become more volatile.
“VIX is a good indicator, sell when everyone else is greedy and buy when they are fearful.”
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