Fear Gauge Drops and Reveals Stock Shocker

The stock market just dropped a bombshell that no one saw coming. 


Despite enough reasons for investors to pack their bags and run for the hills, it looks like the bulls are here to stay according to DataTrek Research.

The legendary CBOE Volatility Index, popularly dubbed as the ‘VIX’ or the stock market’s very own crystal ball, closed at a post-pandemic low of 12.8. 


That’s right, while you were stressing about inflation and oil prices, the stock market was silently telling us, “Chill, we got this.” 


With a list of potential nightmares lurking around – skyrocketing inflation, soaring oil prices, the Federal Reserve possibly losing their minds, and don’t get me started on the strikes at those big automakers – you’d think investors would be a nervous wreck. 




DataTrek indicates that the ‘Fear Gauge’ is screaming that the US corporate earnings are rock solid.


And if you’re waiting for that big, bad recession shadow to loom overhead, you might be waiting a long time. 


Nicholas Colas, the brain behind DataTrek, dished out that with this super-low VIX, a recession isn’t on the horizon anytime soon. 


And if you’re thinking the Federal Reserve might hike up rates again, think again. 


The next big move? 


Rate cuts.


Colas also threw in a zinger for all the doubters out there: “We’ve been saying for several months that a low VIX is a sign that US stocks are in a bull market rather than being excessively delusional about the obvious challenges ahead.”


But the cherry on top? 


Market guru Ed Yardeni chimes in with the revelation that corporate earnings estimates are shooting to the moon.


What’s that mean for you? 


If history’s any guide: rising profits = soaring stock prices.


Bottom line: If you thought the stock market party was winding down, pour yourself another drink and turn up the music. 


The bulls are JUST getting started.

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