(Posted August 23, 2016)
Here are some noteworthy observations worth considering as you wait for the slow-motion market to make a decisive move.
First, according to the Wall Street Journal:
“The past 30 days have been the least volatile of any 30-day period in more than two decades. Only five days during the most recent stretch saw the S&P 500 move by more than 0.5% in either direction, the lowest since the fall of 1995.”
Investment managers who need to deploy client capital are waiting patiently for a dip, but with the market at a literal standstill that hasn’t been seen in over two decades, no opportunities exist for an entry.
This chart of the S&P 500’s volatility is the lowest it’s been in a decade, signaling complacency in the market as views strengthen that that only thing that can bring the market down is the Federal Reserve and central bank actions:
Rainier Trinidad, CFA
San Diego and Coronado’s Fiduciary Financial Advisor
Parabolic Asset Management
206 J Avenue
Coronado, CA 92118
Investment Risk Disclaimers: (i) Investments involve risk and are not guaranteed to appreciate, and (ii) Past performance is no guarantee of future results.