Volatility Rising

The fear guage is rising. and will do so for the next few days/weeks. The markets are superheated and the last 2 weeks saw a significant cool down. but that doesnt mean that the fear guage is done yet. Vix is an indication of things to come. As the fear factor rises, investors will rotate their funds from riskier assets (Stocks, etc) and move it into safer assets (Bonds, Dollar, Yen).
If along with the Vix, the Yield rates rise, then Gold and silver prices will fall more. If Yield rates do not rise with the rising Vix, then funds will move into precious metals for safety.
What does it mean for Nasdaq? Nasdaq has seen a massive fall from 13900 to 12660 over the last two weeks. Is the fall done? well that is only a measly 8% cooldown after a supercharged increase of 106.46% since march 2020. That increase was driven by higher utilization of digital assets, but now with the promises of new money printing hitting the press, and talks of a stimulated economy started the rotation towards industrials. With the Rising Vix, an accelarated fall by 20% is not unhinged. 20% would amount to a 2600 points fall, taking nasdaq to the 11500 to 12000 mark. So there may be another 700 points fall from here.

Safe Investing everyone.