Elena Nikulina

James E. Thorne: VIX inversion may signal contrarian buying opportunity

James E. Thorne: VIX inversion may signal contrarian buying opportunity
Spot VIX above futures may present opportunity

James E. Thorne described how when spot VIX trades substantially above three-month VIX futures, markets are pricing in immediate fear that may prove temporary. Thorne suggested that such inversions can be seen as contrarian buying opportunities. He also noted that VIX readings above 30 have historically preceded average S&P 500 gains of 20%.

Thorne has previously noted that bond vigilantes are monitoring recent movements in Consumer Price Index data. In a separate forecast, he predicted the S&P 500 could reach 10,000 by 2027. He has also advocated buying the dip as markets rebound toward year end.

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