Technical matters

Market volatility (VIX) is at record low levels - 12.43. Investors are worried because there is only one way for volatility to go - up.

Wait a minute. It is like bond yields. The fact that volatility is low doesn’t necessarily mean it will rise. Yes, eventually it will. But between now and then it will stay low.

So? Well, low volatility is typically associated with a rising market. My point is the time to worry is when volatility rises, not when it stands at low levels.

George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager

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