More Volatility Ahead?

By: ETFdb
Last week, rising geopolitical tensions finally derailed the 2014 rally. Though U.S. stocks finished up for the week, the tragic downing of a Malaysian civilian airliner over Ukraine and worsening conflict in the Middle East sparked a market rout on Thursday that brought an unusually quiet period for financial markets to an end. Since then, the market has been swinging between gains and losses, and investors should buckle up for more volatility ahead, as I write in my new weekly commentary. Why? Despite recent market swings, volatility is still very low by historic standards. Even at its peak on Thursday, equity market volatility, as measured by the VIX Index, only reached 15, roughly 25% below the long-term average, and by midday Monday, it was back down to around 13. Low volatility suggests markets are complacent and not taking into account the prospect of bad news. Indeed, there is no shortage […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Last week, rising geopolitical tensions finally derailed the 2014 rally. Though U.S. stocks finished up for the week, the tragic downing of a Malaysian civilian airliner over Ukraine and worsening conflict in the Middle East sparked a market rout on Thursday that brought an unusually quiet period for financial markets to an end. Since then, the market has been swinging between gains and losses, and investors should buckle up for more volatility ahead, as I write in my new weekly commentary. Why? Despite recent market swings, volatility is still very low by historic standards. Even at its peak on Thursday, equity market volatility, as measured by the VIX Index, only reached 15, roughly 25% below the long-term average, and by midday Monday, it was back down to around 13. Low volatility suggests markets are complacent and not taking into account the prospect of bad news. Indeed, there is no shortage […]

Click here to read the original article on ETFdb.com.

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