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Be aware of volatility in stocks

Evidence presented in the chart shows that the volatility in stock market (SPX 500 & DAX) is rising; this is sure to make the market rise dis comforting in the coming months. The first one is SPX 500 & DAX as next in the…

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Be aware of volatility in stocks
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  • Evidence presented in the chart shows that the volatility in stock market (SPX 500 & DAX) is rising; this is sure to make the market rise dis comforting in the coming months. The first one is SPX 500 & DAX as next in the figure.
  • In recent days the volatility has dropped sharply but the long term average volatility in rising steadily.
  • If history is of any evidence we can expect more volatile days ahead.
  • If the Greek situation worsen or cease fire deteriorates further in Ukraine; bulls in the market can take larger hit over the short term.
  • Fundamentally the outlook remains bullish for the equity due to the fact that major central banks around world are easing policy & global growth is improving, though in divergence. Despite so, as political risk increases, we expect the market to remain cautious and volatile.

 

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