Wednesday, 26 September 2012

A peek at a Stock market Chart showing an increase in volatility for the rest of 2012



Investors do not seem to be worrying about the potential for a severe economic crisis. This may be due to a continued euphoria over the short-term boost to asset prices caused by QE infinity.
The S&P 500 Volatility Index (VIX) is back below 14%, close to the five-year low set on August 17th, 2012.

Should any hiccup occur in the financial, economic, or political arena will cause the VIX to soar.
The stock market will be seen as over-valued should any negative reaction from any unexpected shock occur.. An over-valued market will be magnified from an historical perspective between 15%  and 50%.

I pray that your trading and investing will be productive and that you invest wisely.
Have a profitable day.

Marsha Anderson

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