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Welcome Back Volatility
February 12, 2014 at 19:00 PM EST
Last Monday, the VIX Index – a measure of volatility often referred to as the “Fear Gauge” – hit a 13-month high of 21.44 and U.S. stocks registered their worst day since last June. By Thursday and Friday, however, U.S. stocks rallied significantly, with back to back days of 100-plus gains in the Dow Jones Industrial Average. What’s going on? Volatility, welcome back. Greater volatility can mean big swings in the market – up or down. That’s what we saw last week, and as I write in my new weekly commentary, I believe investors should expect more of such volatility ahead. Here’s why: While commentators have focused on the turmoil in emerging markets as the reason for recent rocky market performance, I place much of the blame on disappointing U.S. economic reports. Last week’s disappointing U.S. nonfarm payroll report brought more evidence that structural issues continue to bedevil the U.S. labor market. U.S. job growth [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Last Monday, the VIX Index – a measure of volatility often referred to as the “Fear Gauge” – hit a 13-month high of 21.44 and U.S. stocks registered their worst day since last June. By Thursday and Friday, however, U.S. stocks rallied significantly, with back to back days of 100-plus gains in the Dow Jones Industrial Average. What’s going on? Volatility, welcome back. Greater volatility can mean big swings in the market – up or down. That’s what we saw last week, and as I write in my new weekly commentary, I believe investors should expect more of such volatility ahead. Here’s why: While commentators have focused on the turmoil in emerging markets as the reason for recent rocky market performance, I place much of the blame on disappointing U.S. economic reports. Last week’s disappointing U.S. nonfarm payroll report brought more evidence that structural issues continue to bedevil the U.S. labor market. U.S. job growth [...]
