The volatility indicator for the ESTX50 (VIX) shows a level of 15.7%. That is the lowest since January 2020, when COVID-19 peeked around the European corner. We know that risk happens fast and that this can change overnight, but for now everything seems calm in investor world. The shadow side of this, for us, is that it also reduces premiums on options. We are not new to periods of low volatility.
How we respond to these more challenging months? By sticking to our strategy and not increasing our risk. Fortunately, and unfortunately (yes, both are true), this low volatility too will pass.
Source: Investing.com
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