VIX Does Not Reflect Future Stock Returns.
There is little correlation between the VIX Index and future stock returns. Rather, buying when the VIX is somewhat high has always been the bottom. When the VIX spikes, short-term returns follow a random walk. But over time, it eventually delivers very high returns.
Of course, it can go down in the short term
The VIX is simply driven by how much market participants at the Chicago Board Options Exchange expect stock prices to move in the future. Of course, a VIX of 35 also implies a 10% upward move after taking √12, but because the stock market generally goes down like an elevator and up like an escalator, it refers to betting on the downside.
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Even looking at the chart of the past 30 years, every time the VIX peaked was a bottom. The VIX is just a passing indicator, not a trend.
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