Volatility Spikes On Geopolitics: 4 ETF Tactics To Shield
Zacks Investment Research | Aug 10, 2017 10:37PM ET
Volatility in the stock market has accelerated this week with the CBOE Volatility Index (VIX) hitting the highest level since the election amid escalating tension between the U.S. and North Korea. The fear gauge, which measures investors’ perception of market risk, spiked 44.4% in yesterday’s trading session. This suggests that investors have started to panic. Notably, the fear index was up 61.5% over the past three sessions.
Inside The Rising Tensions
Though tensions between the two countries were rife over the past several months amid new missile tests by the North Korea, the pace has escalated following tough sanctions imposed by United Nations Security Council last weekend that would slash North Korea’s $3 billion annual export revenue by a third. In the wake of this, North Korea continued its aggression and missile tests.
Trump’s warned on Tuesday that North Korea would face "fire and fury like the world has never seen" if it continues to threaten the U.S. Then North Korea retaliated with a threat that it is seeking a missile attack on the U.S. Pacific territory of Guam, which is home to a large U.S. military base, in mid-August (read: Zacks Investment Research
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