One indicator investors really need to pay attention to during times like this is the Volatility Index, or better known as the VIX, which essentially acts as a fear gauge for the market.

When the VIX spikes aggressively, like we saw during Covid or the 2025 tariff war, it signals panic and extreme uncertainty.
And when that happens, we usually have much bigger problems on our hands, such as:
- Systemic Uncertainty
- Liquidity Stress
- Economic Transmission
- Confidence Shock
Not every VIX spike leads to a prolonged crisis. Some are short-lived reactions to geopolitical or policy shocks and resolve quickly once clarity improves. The duration of the spike often matters more than the spike itself.