The CBOE Volatility Index (VIX) was up to its highest level since August 18, 2017. The index, which measures the volatility on Wall Street, was up to 15.34, up about 11%. The VIX uses both bullish and bearish option bets on the S&P 500 index to illustrate the volatility expected over the next 30 days. The index typically rises as stock prices decline.
This rise in the 'fear index' suggests that investors are banking that volatility will accelerate in the future. 10-year Treasury note yields have also increased above 2.72% this week, which is also a sign that many investors are looking to other investments for greater yields, and less risk normally associated with stocks.
The Dow Jones Industrial Average was down nearly 400 points on Tuesday, while the S&P 500 Index had dropped over 1% along with the Nasdaq Composite Index, which had also declined, by 1%.
It's no wonder why so many investors are turning to the safety and protection of precious metals. Both gold and silver are off to one of the best starts they have had in years. As investors realize that the potential for a major correction in the stock market looms closer, the demand for precious metals continues to increase. 2018 may be the breakout year that so many have been predicting.
This may be the ideal time to diversify and protect your savings and retirement before its too late.