Volatility is back.
The CBOE Volatility Index VIX, +26.16% also known as the fear index, has recently hit its highest level in six months. The S&P 500 Index SPX, -3.24% had a 10% decline before rebounding.
The reason is rising interest rates. The Federal Reserve has raised interest rates three times this year. Most expect one more increase by the end of the year.
Since 2016, the yield on the 10-year Treasury bond has more than doubled and hit its highest level since July 2011.
