When stocks go up volatility goes down and vice versa. While this historically inverse relationship plays out most of the time, there’s been a significant disconnect as of late. The chart below illustrates this disconnect. As you can see, over the past three-months, the S&P 500 (black line) has gained around 2.7% yet the S&P 500 volatility …
While Wall Street and the mainstream media is enamored by one all-time high after another in the U.S. stock market (NYSEARCA:DIA), other key investment themes have largely been ignored or forgotten. If the S&P 500 (SNP:^GSPC) stays the same or edges higher, it’ll mean five consecutive yearly gains and nine gains out of the past 10 years. …
Was the S&P 500 the last proverbial man standing? Today’s -2.09% clobbering officially wiped out the S&P 500’s (NYSEARCA:IVV) YTD gain. Put another way, three-months of gains were lost in single trading session! (See chart below) The swift decline doesn’t come as a surprise to our readers, as we’ve been warning about the stock market’s …