The S&P 500 and VIX exhibit a reflexive relationship where causality runs both directions: equities collapse because volatility spikes (complacency breaks), and volatility spikes because equities collapse (panic feedback loop), making this a self-reinforcing dynamic.
causalpending
Speaker
Diego PereaEvidence Quote
“volatility increases because um equities collapse and there are times when equities collapse because uh volatility spikes... it naturally brings equities lower”
Source
Matter Of Time Bubble Implodes; What The Next Financial Crisis Looks Like | Diego Parrilla— David LinCreated: 8/12/2026, 6:46:15 PM
My Notes
Loading notes...