Report Analytical Group: New financial crisis approaches

Baku. 8 January. REPORT.AZ/ The global volatility index (VIX) dropped to a historiclow of 8.56 points. Report informs, the previous minimum index of VIX was recorded in 1993 (8.89 points).

Notably, although the VIX index is considered to be a threat or a frightening index, its primary task is to be seen as a speeding fluctuation in financial market. VIX is actually a short name of the CBOE (Chicago Board Options Exchange) Volatility Index, indicating the volatility of the United States' S&P 500 index.

According to the VIX statistics, its average price was about 18 since 1990. However, in some cases VIX was below 15. So, after 1990, three such long-term periods were fixed. It was recorded from February 1993 to September 1996 (43 months, average price - 13.4 points), February 2005-October 2007 (32 months, 13.2 points) and August 2013- July 2015 (23 months, 14.4 points).

The next period covers the period of October 2015 - January 2018 (28 months, 12.75 points).

Analysts of Report News Agency say the global financial market has faced a crisis after all three of the aforesaid periods. Thus, the global crisis in 1998-1999 covered developing countries such as South-East Asian states and Russia. The second crisis started in the United States in 2008-2009. The third crisis is due to the fact that the US has started to lower its discount rate. 

And statistics show that a new financial crisis approaches.