FYI: Financial markets can play mind games with you because even periods of relative calm can turn out to be a problem when they cause investors to become complacent. Volatility can be a tricky concept because most investors confuse it with risk downside risk but it can occur on the upside as well. Here’s a piece I wrote recently for Bloomberg talking about both short- and long-term volatility in the markets and how investors can think about its meaning.
Markets have been eerily calm. It’s now been 40 trading days since the last move of 1 percent in the S&P 500, and that was an up day. Stocks haven’t had a down day of 1 percent in more than 80 trading days — and that was in early October.
Regards,
Ted
http://awealthofcommonsense.com/2017/04/where-has-all-the-volatility-gone/
