“Everyone has the brain power to make money in stocks. Not everyone has the stomach,” once observed legendary fund manager Peter Lynch. His point was that most people don’t have the stomach – or emotional stamina – for sticking to an investment plan when market conditions get choppy. What makes 2018 remarkably different from the …
Stock market volatility ain’t what it used to be. And unlike recent years, the VIX, a benchmark of volatility in S&P 500 stocks, (NYSEARCA:VOO) has been consistently up in 2016. The chart below illustrates how market conditions and stock market volatility or VIX (ChicagoOptions:^VIX) have dramatically changed over the past 52-weeks. (Audio) Stress-Test Your Investments Now + It’s Not a Bear …
Rising Stock Market Volatility, A Sign of the Times Read More »
Stock market volatility is often wrongly portrayed by the mainstream media as an enemy. In reality, it’s not. First, prudent investors use volatility (ChicagoOptions:^VIX) as an effective tool to measure the stock market’s psychology. Why? Because excessive bullishness or bearishness in market prices is instantaneously reflected in the VIX. And therein lies the opportunity! At ETFguide, we use VIX readings in conjunction …
Do good performing investments always start out good? The short answer is not necessarily. As proof, we showed ETFguide’s readers a real life example in the June 2015 issue of the ETF Profit Strategy Newsletter. In that issue, we shared an incredible story about a 72-year old investor who converted a $95,000 investment made in two …
Stock market volatility is frequently portrayed as an evil force that all investors should strive to avoid. However, embracing volatility (ChicagoOptions:^VIX) rather than avoiding it can be extremely lucrative. On 12/17/14 we told our subscribers the following via our Weekly ETF Picks: “The VIX has been on a tear, gaining almost 40% since early December. Here’s …
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 …
Reader poll: What’s among the most depressed asset classes in the world? If you answered “volatility” you’re right on! The problem for volatility bulls (NYSEARCA:VXX) is we haven’t had a sustained level of stock market volatility. That hardly means a lack of opportunities to profit from short-term volatility exist. The opposite in fact is true. The chart …
How Long Will Stock Market Volatility Stay Subdued? Read More »
One week after the VIX (ChicagoOptions:^VIX) spiked to 30, Wall Street’s Kool-Aid drunks are back to saying that stock market volatility is over. It’s done. And it’s never returning. The Santa Claus rally in small cap stocks (NYSEARCA:IWM) and technology shares (NYSEARCA:XLK) smack dab in the middle of October, now has Sand Hill road (Silicon …
Psst…Volatility is Still Outperforming the S&P 500 Read More »
Is stock market volatility rising or falling? For most of this year, stock market volatility has actually outperformed the stock market itself. But for whatever reason, it’s an unpopular narrative that’s been and continues to be ignored by the mainstream media. The chart below illustrates the relationship between stocks and volatility in 2014. You’ll notice how the S&P …
Is another surge in stock market fear and volatility ahead? Will you be ready when it happens? “Public psychology is the most important single factor in shaping security markets,” said Gerald Loeb. Loeb was right and that’s why we make it a regular habit at ETFguide to track movements and trading opportunities in the CBOE …
Like a sleeping giant, stock market volatility can hibernate, but it never goes away. Right now, the giant is showing signs of awakening and whether the beast completely tramples the city is yet to be determined. Although the S&P 500 (^GSPC) hit all-time highs near 1,859 last week, a number of flashing indicators we’ve written …