VIX Levels Signal Potential for Strong S&P 500 Returns

Market analysis by KobeissiLetter suggests a potential for robust returns in the S&P 500, aligning with historical data on the Volatility Index (VIX). When the VIX surpasses a threshold of 28.7 points, the S&P 500 historically demonstrates strong performance over the following year, averaging an increase of 16% when the VIX ranged from 28.7 to 33.5. If the VIX exceeded 33.5, the average return climbed to a remarkable +27% during that same period. Conversely, when the VIX fluctuated between 11.3 and 12.0, the S&P 500’s next-year performance averaged a modest +15%. Historical trends indicate these elevated VIX levels often present buying opportunities.