SP500 vs VIX. Is The Sky Falling?

In a simple word.  No.  

The sky is not falling.

Here is a monthly ratio chart of the SP500 (spy) vs the VIX (one measure of market volatility).  We like longer-term trends.  They help us from freaking out at every little change in the market..  They help us stay invested and stay the course.  The current long-term ratio and trend here clearly favor the SP500.  This trend has been positive since March of 2016.

This might change at any time.  Sure, I think we are due for a pullback. But, if that morphs into a long-term problem it will show up in this ratio (as well as others) we will adjust accordingly.

Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only.  Do you own diligence when investing your hard earned cash.