Are equity investors getting worried? Are they turning bearish after weeks of optimism?
Yes, they are, indicates the latest movement in the Volatility Index also known as the “fear index,” which measures investor sentiment and their expectations of stock market volatility.
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Bryce Duffy | Stone | Getty Images
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The Chicago Board Options Exchange’s Volatility Index [VIX 16.35 --- UNCH 
] , better known as the VIX, has risen over 20 percent from a low hit on August 17. It jumped 13 percent last week alone, suggesting fear is creeping back among investors.
] , better known as the VIX, has risen over 20 percent from a low hit on August 17. It jumped 13 percent last week alone, suggesting fear is creeping back among investors.
Analysts say a rise in the VIX, which is a good indicator of risk appetite, points to a likely correction in equity markets.
“Historically, when you get the VIX at these levels there is usually a pull-back of around 10-15 percent (in stock markets),” Steven Brice, Chief Investment Strategist at Standard Chartered Wealth Management Group told CNBC Asia’s“Squawk Box” on Tuesday.
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