March 05, 2013 at 09:22 AM EST
3 Reasons Market Volatility Has Returned
By Russ Koesterich, CFA The S&P 500 rallied over 5% in January, with small and mid-caps doing even better. Market strength continued into mid-February, with the market gaining another 2% between January 31st and the recent high on February 19th. However, as I expected, gains have now become harder to come by. Over the last week stocks have pulled back and volatility has once again spiked. This pickup in volatility can be seen in the numbers. Since bottoming on February 1st, the one-month trailing realized volatility on the S&P 500 has nearly doubled and the VIX index – which measures implied volatility – has spiked over 50% from last week’s multi-year low. What happened? The spigot got turned off. Equity flows were flattered by two forces in January: seasonality and the reversal of some unusual tax-related selling in December. This produced a spectacular month for stocks, which many investors attributed [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
By Russ Koesterich, CFA The S&P 500 rallied over 5% in January, with small and mid-caps doing even better. Market strength continued into mid-February, with the market gaining another 2% between January 31st and the recent high on February 19th. However, as I expected, gains have now become harder to come by. Over the last week stocks have pulled back and volatility has once again spiked. This pickup in volatility can be seen in the numbers. Since bottoming on February 1st, the one-month trailing realized volatility on the S&P 500 has nearly doubled and the VIX index – which measures implied volatility – has spiked over 50% from last week’s multi-year low. What happened? The spigot got turned off. Equity flows were flattered by two forces in January: seasonality and the reversal of some unusual tax-related selling in December. This produced a spectacular month for stocks, which many investors attributed [...]

Click here to read the original article on ETFdb.com.

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