What does the VIX say?

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One of the famous investment mantras we learn is "When the VIX is high, it's time to buy. When the VIX is low, look out below!"

Looking back, we missed a few VIX highs! VIX was 60 on March 16, 2020. The VIX reached a high (34ish) in April and December 2022 (and the prior years) too.  

It seems to me that when VIX and S&P 500 are running away from each other, that's an entry point. 

The current VIX is 20, a decently low range. I hear the market telling us, you shall be patient, it's definitely not the time to buy.

What am I missing?


Reference - Investopedia: 
1. VIX is one of the simplest ways to follow market movers of S&P 500 - are they attempting to hedge their portfolios by either buying put or selling call options to offset their expected losses. 

2. While it is rare, S&P 500 and VIX climb at the same time. Here's the explanation from Investopedia: when institutions are worried about the market being overbought, while other investors, particularly the retail public, are in a buying or selling frenzy. This "irrational exuberance" can have institutions hedging too early or at the wrong time. While institutions may be wrong, they aren't wrong for very long; therefore, a decoupling should be considered a warning that the market trend is setting up to reverse.



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