Market expert Tom Lee thinks the recent stock market drop might be over. He’s looking at the VIX, a measure of how much investors expect the market to move. The VIX spiked really high last week, but it’s starting to calm down.
“The VIX is normalizing, and that tells me the worst of the panic is over,” Lee said. “We might see some more bumps in the road, but the selling pressure is behind us.”
Lee calls this a “growth scare,” meaning investors are worried about the US economy. But he thinks there’s reason to be optimistic.
“Look at weekly jobless claims,” he said. “They were better than expected last week, and the market reacted positively. That’s a good sign.”
Lee thinks the market will recover soon, but investors should still be cautious.
