came as bond yields surged amid concern about persistently high inflation and the likelihood that the Federal Reserve would hike interest rates more than initially expected.closed at 22.9, its highest level since the first trading day of 2023," DataTrek Research co-founder Nicholas Colas said in a Wednesday note. The VIX continued its surge higher on Wednesday, jumping over 1% to 23.18.
"We are back in 2022's market dynamic, where investors are increasingly concerned that the Federal Reserve will be taking rates higher than previously expected and inflation will linger longer than previously hoped," Colas said. "Our old market rule of 'buy' when the VIX gets to 28 to 36 still applies. The former level is one standard deviation from the long run mean and the latter is two standard deviations. In 2022, when the VIX got to those levels it signaled a near term buying opportunity," Colas explained.
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