Market volatility found itself at the center of 2022 as investors watched the broader financial markets slump against a backdrop that included elevated levels of inflation and geopolitical uncertainties.
As a result, the S&P VIX Index ended the 2022 trading year higher by roughly 22% after it opened at 17.5 and closed at 21.6. At the same time the volatility tracking instrument peaked 38.94 in mid January, which equated to a 121% upside move.
PriceVol, another volatility index branded by ASYMmetric ETFs aims to calculate the complete landscape of the volatility reflected in the entire S&P 500. PriceVol noticed that levels were higher in the first half of 2022 when the S&P 500 incurred its losses. Moreover, the month of October noticed the highest PrceVol levels on the calendar year. See below a month-by-month chart of the PriceVol levels:
Heading into 2023, market participants weigh the idea of a possible market recession and how that would impact the broader financial landscape. Therefore, as the year progresses volatility focused funds will be watched closely.
In broader financial news, stock index futures pointed to a slightly higher opening on Monday following the sharp rally to end the previous week.