PA ANALYSIS: Time to put your feet up as ‘fear index’ drops to lows?
As the world neared a confrontation between two nuclear powers last week, the VIX index of volatility fell to a three-year low in an almost wanton display of indifference.
As the world neared a confrontation between two nuclear powers last week, the VIX index of volatility fell to a three-year low in an almost wanton display of indifference.
As the month of May trundles into view investors will be thinking about the traditional summer-proofing of portfolios, but the shrewdest among them may see more opportunity than danger.
It has been quite a start to the year in financial markets and the initial impulse many will have is to batten down the hatches and try to weatherproof portfolios.
The past few weeks have been somewhat of a rollercoaster ride for investors across markets.
It is fair to say that this week is the very peak of the summer as far as the investment industry goes but it could be a bad time to take your eye off the ball.
The most trusted measure of volatility, the Vix also known as the ‘fear index’ fell to a five-year low this summer. Most commentators predict a more turbulent end to the year, but investors can take steps to protect against volatile markets.
The popularity of ETFs and ETNs which trade in volatility has grown in recent years, though there remain misconceptions about how they work, according to a new research paper from S&P Indices.
Tom Elliott explains why he expects the VIX to keep rising on its upward trend thanks to QE worries