Investors think that low volatility implies complacency. From a contrarian viewpoint complacency means high risk or an important market top.
Peter Dag & Associates does not agree. Our research shows quite the opposite. Low volatility, more often than not, points to a strong market.
We have developed a composite indicator showing the odds favor a strong market, as we are having today, when volatility moves in a well defined range.
The market is likely to pause for several weeks when our indicator moves above this range.
We have featured this gauge in the past two issues of The Peter Dag Portfolio with some success. Of course, past performance does not guarantee future results.
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George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year 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.The content on this site is provided as general information only and should not be taken as 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.
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