Home Views US stocks

Fear has gone missing in Wall Street's slow-motion bear market

Bloomberg
Bloomberg6/26/2022 09:42 PM GMT+08  • 4 min read
Fear has gone missing in Wall Street's slow-motion bear market
Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

For all the pain that has piled up in the US stock market, one thing has been in surprisingly short supply: Fear.

Virtually every corner of Wall Street is being rattled by worries that rising interest rates will drive the economy into a recession, spurring large price swings in everything from junk bonds to foreign currencies. But the CBOE Volatility Index, the so-called fear gauge of stock-investors’ sentiment, is holding well below levels seen in past bear markets.

Options strategists and bankers cite a simple reason: The S&P 500 has been staging a long, orderly descent from the record level hit at the start of the year as the Federal Reserve pulls back its flood of pandemic-era stimulus. That differs from shock-driven crashes like the ones caused by Covid-19 in March 2020 or the collapse of Lehman Brothers Holdings Inc. in September 2008, both of which sent the VIX surging as investors sought to hedge the risk of wild market swings.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now