Fear Gauge

The Fear Gauge, often represented by the CBOE Volatility Index (VIX), measures market expectations of near-term stock fluctuations. Think of it as a thermometer for investor anxiety: when the VIX is high, investors are worried about potential declines, leading to more market volatility. Conversely, a low VIX indicates confidence and stability. It's used by traders and analysts to gauge sentiment and potential risk in the market, helping them make informed decisions amid changing economic conditions.