Last week, Wall Street’s so-called 'fear indicator,' the VIX (Chicago Board Options Exchange Volatility Index), set a new low since just prior to the 2008 financial crisis. The only time in the past two decades that this indicator was so low was in 2007, right before markets started to decline. Many are wondering aloud if this means that the market has again become too complacent, and that a recession and subsequent market decline are just around the corner. This is the subject of today’s ... [Continue Reading]
Market Volatility
Articles and resources related to Market Volatility.
The Impact of Stress on Investment Decision Making
Posted on March 2, 2017Our emotions affect our investment decision making in countless ways, which can have a very real impact on our long-term financial goals. One of the most powerful ways our emotions affect us is through our appetite for risk. When markets are calm and returns have been positive, our brain tells us that it’s okay to take on more risk in hopes of achieving higher rates of returns. The opposite is true as well. When markets become volatile and returns have been negative, our brain tells us to take ... [Continue Reading]
Brexit’s Potential Impact on Global Markets
Posted on June 17, 2016Next Thursday, June 23rd, the people of Great Britain will vote on whether their country should remain a part of the European Union (EU). This is being referred to in the media as ‘Brexit.' As we move closer and closer to voting day, the polls are getting tighter and it appears there is a real possibility that the citizens of the UK may vote to leave the union. The ramifications of this vote will impact markets worldwide and will make a significant statement regarding the long-term viability of ... [Continue Reading]
China’s Key Risk: It’s Housing, not Stocks
Posted on February 2, 2016China is at the forefront of most of the financial news right now-- and for good reason. With the volatility in the market to open the year, there is a great deal of fear present related to China's performance. It is generally more helpful to consider the underlying causes of volatility, rather than simply being concerned with day-to-day stock fluctuations. Interestingly enough, an area for concern pointed out by the following article is one of the issues that the United States grappled with in ... [Continue Reading]