Understanding VIX: The Fear Index

Every time the market bleeds, Twitter loses its mind, the news cycle goes apocalyptic, and retail investors panic-sell at the absolute bottom.

The smart money? They just look at the VIX.

The VIX is Wall Street’s "Fear Gauge." It literally measures how much money institutional investors are paying for portfolio insurance. When the market is steadily going up, the VIX is quiet. But when a crash hits, the VIX violently spikes.

Here is the secret to surviving your 30s without a financial heart attack: Market crashes are guaranteed, but panicking is a choice. When you see the VIX spiking above 30, it means peak fear has hit the market. Historically, buying solid assets when the VIX is screaming high is one of the most profitable strategies you can execute.

When the crowd is terrified, that is your signal to go shopping.