The stock market's fear gauge will plummet in 2023 as inflation drops, setting the S&P 500 up for gains of 20%, Fundstrat says

Dec 21 2022 by Business Insider

 
A trader works at the New York Stock Exchange NYSE in New York, the United States, on March 9, 2022.

Michael Nagle/Xinhua via Getty

Volatility is set to plunge in 2023 as inflation falls back to 2%, according to Fundstrat's Tom Lee.That would be great news for the stock market, as big drops in volatility are associated with robust gains for stocks."If VIX falls 20% (expected after surging >25), equity gains are far higher averaging 20%," Lee said.

After a heightened year of volatility, Wall...

Continue Reading The stock market's fear gauge will plummet in 2023 as inflation drops, setting the S&P 500 up for gains of 20%, Fundstrat says