Barclays Sees VIX Plunging to Pre-Covid Level in Clear Biden Win
- Strategists see fear gauge at 20 in decisive Democrat victory
- VIX future covering post-election period now trading at 29
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Wall Street’s fear gauge is poised to tumble to pre-pandemic levels in the aftermath of a clear-cut election victory for Joe Biden even if U.S. stocks decline in its wake, according to Barclays Plc.
In projections more aggressive than the futures market is pricing in, the Cboe Volatility Index will likely drop to “at least” 20 if a win for the Democratic contender is confirmed shortly after the Nov. 3 vote, the bank told clients this week.