This story was originally published here.
In March, the market's “fear gauge” hit its highest level since 2008.
That was during the height of the coronavirus pandemic. The market was crashing. And folks were terrified.
Today, fear in the market has subsided as stocks close in on new highs. It's more than that, though…
This fall in the fear gauge is actually a sign of more gains ahead. In fact, you can expect double-digit gains in the S&P 500 Index over the next year, based on what's happening right now.
Let me explain…
Longtime readers know that when I refer to the market's “fear gauge,” I'm talking about the CBOE Volatility Index (“VIX”).
When uncertainty shows up in the market, people get scared… and the VIX starts to move higher. It can be a great contrarian indicator, showing when folks are giving up on stocks.
Now, we know we want to buy after folks get scared. But remember, uncertainty can always drive the VIX higher than you can imagine.
So instead of just looking at when the VIX hits new highs, we want to see what happens when that fear starts to dissipate.
Again, the VIX spiked in March as pandemic fears took over. But it has fallen recently. While this measure peaked above 80, it's now below 35 again.
To see what happens when fear subsides, you need to look at every time that the VIX rose above and fell back below a level of 35… like we saw recently. These spikes highlight fear extremes and let us know when things are getting back to normal.
Now that there's less coronavirus uncertainty in the market, the VIX is back down. Take a look…
Editor's Note: Click here to keep reading.
Man who made EIGHTEEN 1,000% recommendations unveils #1 stock
Most people will go their whole lives without capturing a 1,000% gain in stocks.
But one man from rural PA may have cracked the code.
11 years ago, millionaire early stage investor Matt McCall shared some of his first recommendations with the public, live on air.
The anchors laughed in his face…
Since then, McCall has built one of the greatest track records in the financial world.
He's pinpointed dozens of stocks that went on to jump 100% or more.
Plus 18 recommendations that skyrocketed over 1,000%.
McCall just teamed up with one of the biggest names in finance to reveal the name and ticker symbol of what he predicts will be the best-performing stock of 2020.
“I'm confident that this is my next big winner — and I haven't felt this way since back in 2009. This company is on the cutting-edge of one of the greatest medical breakthroughs of the 21st century. You can't afford to ignore this.”
To see McCall's newest prediction for yourself, simply go here.
You'll get this stock's name and ticker symbol, absolutely free.