Last month, the Cboe Volatility index, which investors also refer to as the "fear index," spiked to nearly 32 after starting the year under 17. This was due to a variety of factors, including pending interest rate hikes, high equity valuations and concerns about the omicron variant's effect on the economy. However, the VIX has fallen to around 23.
Cboe Volatility index spikes in January
Over the past 30 years, the average VIX has been 19.5 based on monthly data. Throughout much of 2021, it was below 20, including 17.2 at the end of December.
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