Chart of the Week: Transitory Market Fear of Inflation

Chart of the Week | August 16, 2021
Macro Insights

Transitory Market Fear of Inflation

  • The market fear gauge (VIX) looks to have normalized since the onset of inflationary fears in the second half of 2020 into the first half of 2021.
  • The VIX is currently hovering around 20, which is in line with the average VIX reading since 1990 (19.57).
  • The increasing spread between inflation and the VIX shows that the market fear for inflation may be cooling off, illustrating that the transitory inflation argument may have substance.
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Hunter Frey, Analyst
Hunter Frey, Analyst
Hunter Frey is an Analyst at Catalyst Capital Advisors, LLC and Rational Advisors Inc. covering all in-house equity strategies and an insider buying income-oriented strategy at Catalyst Funds. Mr. Frey received a Bachelor of Science degree in International Business with a focus in Spanish from Gardner-Webb University, Godbold School of Business, and is in pursuit of a Master of Business Administration in Economics and Finance from New York University, Stern School of Business.

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