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Analysis: When the Volatility Index VIX exceeds 28.7, the S&P 500 often delivers strong returns.
On November 24, KobeissiLetter released a market analysis indicating that, based on historical data, when the Volatility Index (VIX) exceeds 28.7 points, the S&P 500 index tends to deliver strong returns in the following 12 months. When the VIX is between 28.7 and 33.5, the average return for the next year from 1991 to 2022 is +16%. When the VIX exceeds 33.5, the average return over 12 months reaches as high as +27%. In contrast, when the VIX fluctuates between 11.3 and 12.0, the S&P 500 index has a return of +15% in the following year. Historical data shows that an increase in the VIX often creates buying opportunities. The current VIX is at 23.42.