Why Markets Fear Volatility’s ‘Fear Gauge’ and How It Amps Turmoil

Markets go up and down; the amount they move is their volatility. In normal times, traders like a dose of volatility, and betting on volatility levels has become a market of its own. But these are not normal times, and worries are growing that extreme financial turbulence may now be feeding on itself. The effects can be seen playing out across stocks, bonds and commodities. Here’s what the worries are about.