Should Investors Fear the Fear Index?

The VIX Index can provide clues about future stock returns

Stephen Foerster

--

Woman hiding under covers
Photo by Alexandra Gorn on Unsplash

If you’re a contrarian, then what seems like good news to others may feel like bad news to you, and vice versa. And sometimes, for investors, it can pay to be a contrarian. Some astute investors rely on sentiment measures as contrarian indicators of expected stock returns. For example, if most investors…

--

--

Stephen Foerster

I’m a Finance prof, CFA, and author of In Pursuit of the Perfect Portfolio (with Andrew Lo). I write stories about investing. (I don’t give financial advice.)