How Long Can the Market Sustain its Low Volatility?
Volatility in the stock market has a direct impact on stock performance and annualized returns. Historically, when market performance is positive, volatility will tend to decline. Conversely with higher volatility, investors experience greater risk, while the market sees a decrease in returns. With the current calmness of the stock market, we have to wonder how long the market will sustain its low volatility, and when we should be concerned. (more…)