Volatility as measured by the VIX index or the "Fear index" is a good gauge of how worried or fearful investors are. When times are good and markets are rising steadily, this tends to be low. This has been around mid decade in recent times with lows just above 10 in the mid nineties the 2000's and recently. When things start to deteriorate this index tends to rise and volatility tend to peak as markets fall and fear rises as seen in 2008-9 and the early 2000's. As Warren Buffet says be greedy when others are fearful and be fearful when others greedy - which they are probably being right now. Meanwhile see below the graph for another holiday reading suggestion appropriately called the Fear Index.
With another rainy Bank Holiday due in the UK this Weekend, I thought I would recommend another book to you. This one is a work of fiction and it is a thriller about Hedge Funds, artificial intelligence, markets and murder. It is not hot off the presses as it was out a couple of years ago, so if you missed it back then you can now pick it up quite cheap, so as ever I try to bring you value! Any way I found it enjoyable and I read it quickly so I would certainly recommend it.
The Fear Index as you can see is a book by Robert Harris. You can visit his website by clicking the highlighted text to learn more about it or click the image for other buying options on Amazon - used from 1 pence apparently, although more like £1.68 with postage charges. Remember other book shops are available and it may even be at your local library which is worth supporting before your Council closes it down.
Enjoy, and be fearful out there.