Markets
Low VIX does not necessarily mean that volatility is gone forever
The last 8 years have seen massive upside for stock investors, with the major indexes nearly tripling since the Financial Crisis. Many investors have become complacent in such an environment, which has been hallmarked by a VIX that has hovered around all-time lows and well below its historic average. Low VIX does not necessarily mean […]
The last 8 years have seen massive upside for stock investors, with the major indexes nearly tripling since the Financial Crisis. Many investors have become complacent in such an environment, which has been hallmarked by a VIX that has hovered around all-time lows and well below its historic average.
Low VIX does not necessarily mean that volatility is gone forever. While large intra-day drops in the stock market have been relatively absent from markets for quite some time, statistically, they are bound to return—possibly with surprising regularity.
The following article from MarketWatch by Mark Hulbert illustrates the possibility and statistical likely hood of massive intra-day moves in the market. Will we have another 1987 – where stocks crashed over 20% in just one single session? The odds might be far grater than you would expect…
Learn more about how the experts here at Investitute can teach you how to Crash-Proof Your Portfolio or even potentially profit from a market downturn.