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News  ›  Investing.com

A Year of Market Fear — and Resilience: Breaking Down the VIX in 2025

Investing.com Logo Investing.com By Mike Zaccardi, Cfa, Cmt
A Year of Market Fear — and Resilience: Breaking Down the VIX in 2025

2025 was marked by significant market volatility despite ending with resilience. The VIX spiked dramatically in April (above 60) following trade war rhetoric and policy uncertainty, but the S&P 500 recovered strongly with a 35%+ rally from May onward. Despite macro noise around tariffs, inflation, and Fed policy, the market delivered 15-20% returns with a maximum drawdown of only 19%, rewarding investors who focused on price action over headlines.

Insights
BACpS   neutral

Buffett trimmed the position by 26.3 million shares, suggesting a measured approach to the financial sector


AMJB   negative

CEO Jamie Dimon's 'cockroaches' comment in October sparked renewed concerns about regional bank exposure to bad loans and triggered negative price action in the financial sector.