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Goldman says the market is flashing a warning signal not seen since dot-com bubble

This is the highest the volatility gauge has been at a time when the S&P 500 was also at a peak, going back to the turn of the millennium

Traders on the floor of the New York Stock Exchange.
Traders on the floor of the New York Stock Exchange. Photo: Michael Nagle/Getty Images

Goldman Sachs warns that the “fear index”, or VIX gauge of market volatility, is sending a signal not seen in more than two decades.

Typically, when the stock market rises, fears subside. But in recent years, Goldman said in a research note, this pattern has been upended. As the benchmark S&P 500 Index has soared to new highs, the VIX has, too.

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