Volatility

Fallout from Britain’s vote

Britain’s vote to leave the European Union (EU) caught the world by surprise. Since the vote, stock market volatility has increased dramatically—a predictable result because stock markets don’t like uncertainty.  Similarly, interest rates have declined—just as dramatically—because investors seek the safe haven of U.S. Treasury bonds during uncertain times.  With lower rates at home, spillover

British shock and what it means

In a referendum held June 23rd, British voters expressed their will to exit the European Union.  The European Union (or EU) is a confederation of member countries that created a common economic area with laws allowing trade and people to move freely. The initial market reaction to the referendum was dramatic across the globe. This

This Week with J. Mark Nickell & Co. – April 2, 2015

Investors concerned about recent market swings wonder if there’s any relief in sight.  The short answer:  not any time soon.  The Chief Investment Officer at Schwab, Liz Ann Sonders forecasts the near future for this secular bull market.  As tax deadlines approach, the IRS recently announced taxes collected from affluent taxpayers rose more than expected

Where are the gains from international diversification?

2015 may be a year when global diversification is appreciated once again.  The world’s economies and central bank policies are diverging, creating conditions for widely varying results.  Relative valuations among countries may be a reliable guide to future results. Global Diversification Could be 2015’s Winner.  2015 is likely to be a year when global diversification

What lies ahead?

The new year has just begun, but analysts are already forecasting a period of higher market volatility in 2015. Ed Easterling of Crestmont Research graphs the present situation and shows what investors can expect in the coming months.  At the same time, Research Affiliates advises investors to use the structural “building blocks” approach to better anticipate real returns.  And,

What’s driving market volatility now?

What drives market volatility?  Professor Robert Shiller of Yale contrasts the narrative of recent volatility with volatility in 2011.  Skyrocketing volatility of the last several weeks, although painful, is normal and can be healthy, according to the analysts at Charles Schwab.  In the final article, Mark Miller of Reuters analyzes recent social security inflation adjustments

Fear subsides

Calm has returned to markets after several unnerving weeks. The “fear index” has dropped to a calm reading after spiking to its highest reading since 2011.  Lessons were learned.  The consumer is unshaken. Panic Defused in Stocks with Sharpest VIX Drop Since 2009.  The panic has subsided.  The Chicago Board of Options Exchange (CBOE) Volatility