VIX soars to an eight-week high, what are the market concerns?

【BitPush】The market has been a bit volatile in recent days. The VIX fear index jumped 1.9 points on Tuesday, directly reaching an eight-week high of 20.69. Although it retreated to 20.09 by the close, this is the highest closing price since late November.

Interestingly, experts have different reactions to this number. Jim Carroll, a senior wealth advisor in Charleston, straightforwardly said that although the risk indicator has indeed flashed red, it’s far from a state that requires panic. In other words, the current volatility is within controllable limits.

From a trading perspective, investors’ logic is clear — concerns over geopolitical risks lead to selling stocks and switching to gold and cash. This is a standard safe-haven move. Alex Morris, an analyst at Investment Company Investments, pointed out that the critical point that could trigger market panic is when the VIX spikes above 30. While there is pressure now, it’s still some distance from that number.

In simple terms, the market is digesting risks but hasn’t reached a point of losing control. Such times might even give rise to opportunities.