CHART OF THE DAY: VIX → More Like 1987 than 2008

03/11/20 07:46AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

While every cycle has an economic sine-curve that rhymes, no cycle has the same precise emergent properties, other than #accelerating market volatility.

In today’s Chart of The Day, you can see where today’s point-to-point #acceleration is US Equity Volatility fits:

  1. Going back 35 years, there are only 2x that the VIX ripped through 31, held 41, then went > 51…
  2. The time and space between 21 and 51 is more like 1987 than 2008

What’s similar to 2008 is the early (Q1 and Q2 of 2008) panic-policy-response by the Bernanke Fed… which didn’t work… so many market participants moved to beg for corporate bailouts and fiscal (Hank The Market Tank Paulson’s Bazooka) response.

That’s why Trump insinuating he has a “major economic package” (which includes bailouts) is, if anything, a little early.

CHART OF THE DAY: VIX → More Like 1987 than 2008 - Chart of the Day

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