Volatility | August 31, 2017

Category: Quant Insight

Volatility remains near historic lows. We think this indicates that the current sell-off in stocks is likely a short correction within a bull market. Without a sharp rise in market risk, we believe you should look for new highs in stocks to indicate that the current sell-off is over.

Market volatility is an indicator of financial stress. Low or declining volatility environments may indicate favorable periods for equity investments, whereas rising volatility periods may favor sovereign debt and developed market currency exposure.

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