Calm Markets? Maybe Not For Long

Stock market volatility has been muted for much of this year. In March, amid the failures of Silicon Valley Bank and Signature Bank, the Cboe Volatility Index, or VIX, spiked above 20, the demarcation line for high volatility. Now, it’s back to just under 16, in tune with April’s calm market.

We may be in for a resurgent VIX, however, Goldman Sachs warns. That means trades are more difficult and potentially more expensive for investors. Worse, the higher volatility could bring another nasty market tumble, in Goldman’s view.