The VIX Index hit a high close of 38.57 in the yen carry trade scare (much higher intraday). Some may wonder when it will get back to the low teens. That is not likely to happen for a very long time.
The VIX is very noisy, but its overall trend tends to echo what ST rates were doing 2 years earlier.
Because the Fed has pushed up short term rates after throwing all of that free money at the Covid monster, we are now going to see the VIX echo that past action in ST rates over the next two years.
I first wrote about this publicly in 2009, at https://t.co/yb7S2x3fvO, and I shared it before then with my subscribers. It is an enduring phenomenon, but due to the noise in the VIX, it is not a precise one.
Gothilocks is the evil sister of Goldilocks, a lot more fun, but also lethal.
Gothilocks also has a cousin called Choppilocks.
We usually let her out on Fed Days 😌🙏