Why stock-market volatility spike signals Wednesday’s rout could be a buying opportunity

Wednesday’s steep selloff in the U.S. stock market triggered a sudden spike in Wall Street’s “fear gauge,” posing a buying opportunity for investors and may spark a strong year-end stretch for stocks, according to market analysts. 

“The sudden spike in the VIX VIX strongly suggests that Wednesday’s selloff is a near-term buying opportunity. Unless some other powerful negative catalyst comes along, which we do not see happening, we believe U.S. stocks will be higher a month from now than where they closed Wednesday,” Nicholas Colas, co-founder at DataTrek Research said in a Thursday client note.