Nir Kaissar, Columnist

The Stock Market’s Fear Gauge Is Misunderstood

Contrary to popular belief, an elevated VIX doesn’t signal that equities are going down.

May 6, 2025 at 9:00 AM UTC

Nir Kaissar is a Bloomberg Opinion columnist covering markets. He is the founder of Unison Advisors, an asset management firm.

Uncertain times.
Photographer: Michael Nagle/Bloomberg

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Elevated market volatility means stocks are going down, right? Wrong.

I confess that when the VIX, the Cboe Volatility Index, spikes, I brace for stock market declines. Judging by investors’ anxious reaction to the VIX’s surge following President Donald Trump’s big tariff announcement last month, I’m far from alone.

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