This chart shows a well known pattern (click on the chart to enlarge it).
Rising volatility is associated with fear, usually bad news coming from Europe or from actions of some governments around the world. The bottom line is that rising volatility is associated with declining stocks.
Declining volatility reflects confidence and a sense that world affairs are under control.
The good news is that volatility has been declining and the market has been heading higher. Let's hope these trends continue so that we can make some money.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
Disclaimer. No material here constitutes "investment advice" nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
2 comments:
Nice blog. First time here. I will continue to visit.
Jay
Thank you! George
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