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Market Volatility Explained — Friend, Not Enemy

Volatility is not risk. Risk is permanent loss of capital. The two are often confused.

What the VIX actually measures

The VIX reflects what option markets expect S&P 500 volatility to be over the next 30 days. It is a price for uncertainty, not a forecast.

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Frequently asked

Should I sell when volatility spikes?

Historically, the worst returns come from selling into volatility spikes. The best long-term entries often coincide with them.

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