Stock volatility in 2024 is set to reach its lowest annual average in five years, despite significant global tensions such as a contentious US presidential election and ongoing conflicts in the Middle East and Ukraine.
The Cboe Volatility Index (VIX) has averaged 15.5 points this year, reflecting a calmness similar to pre-Covid periods rather than the volatility seen in recent years. The S&P 500 Index has experienced a remarkable surge of over 25% in 2024, reaching 51 all-time highs. This positive momentum is also observed in stock exchanges across Asia and Europe, which have reported substantial gains.
The current market environment indicates a notable shift in investor sentiment, as equity markets respond positively to geopolitical uncertainties.