Will the volatility come back? Goldman Sachs expects increased risk and recommends buying VIX call options.
According to Goldman Sachs' model estimation, based on the current macro environment, the VIX level should be 24.5, significantly higher than the current level; and over the past 30 years, the VIX has averaged a 6% increase from September to October each year; the US stock market also faces macro/macro catalysts such as the election, Fed meeting, and October earnings season.
"Panic index" soars again! How should investors respond during the global stock market turmoil?
Due to the strong negative correlation between the VIX index and the stock market, many investors choose to diversify their investments, hedge position risks, or engage in short-term speculative trading through VIX-related financial instruments.
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