In April, a notable divergence emerged between the VIX and Brent crude oil futures, according to Daniel Yan, co-founder of Kryptanium Capital. This divergence is attributed to the resilience of the S&P 500 index. Yan highlighted that this situation poses a fat-tail risk, as global macro markets experienced volatility shocks at the end of January and February. A third volatility shock could be imminent if current trends persist.
VIX and Brent Crude Divergence Signals Potential Volatility Shock
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