VIX Outside of `Red Zone' Indicates No Recession, Goldman Says

Despite a recent surge, the so-called fear index remains in a trading range that suggests investors aren’t expecting a recession this year.

With an average of about 24 this month, the Chicago Board Options Exchange Volatility Index is consistent with a scenario of positive, though low, economic growth, according to a Goldman Sachs Group Inc. report. The “Red Zone” happens when the VIX is above 25 and climbing, which historically coincides with flat or negative U.S. gross domestic product.