More fallout from last month's financial crisis. Timely because First Republic is down 20% in the pre-open.
Since the bear market started, and reinvigorated last month, there has been talk of the need for a giant VIX spike to shake out the last of the weak hands and let a new bull market start. We haven't had that yet but stocks seem to be building back without it.
This is not making the historical analysis people happy...but the post-covid economics have been one-offs from the start.
here this poster (152k followers) implies that the March financial crisis would lead to a big VIX spike and far lower stock prices.
No, we haven't had a massive fear spike. Yet.
Cheddar Flow
@CheddarFlow
“St. Louis Fed Financial Stress Index rises to 1.575 - a level seen only four times during the last 30 years.” —Oktay Kavrak, CFA
In every case VIX hit at least 45. During the last two spikes, it hit 80.
3/27/23