Is Volatility Really Good for the Markets?
It seems that in a time where the global economy is so intertwined, any news whether good or bad moves markets in every country.
Since the financial crisis we've seen our fair share of ups and downs however what can we make of it? the VIX ( volatility index ) has stayed in a close range of 13 to 18 for the majority of the end of lat year.
Ever since its spike in November reaching highs of over 30, there has been nothing but a choppy trading range and a range now of 13 to 24.
Bottom line is does this really affect us? If you are invested long term and conservatively then you're protected from this turmoil right? Or are you? Even safe portfolios, or as they seem can be affected negatively.
The real winners are the short term traders, fund managers and retail investors who take advantage of these short term price swings.
Yes the broad indices average a modest return year after year.
But why settle for a mere few percentage points when we all know after fees, taxes, and commissions there isn't much left over.
Intra day trading and volatility go hand in hand.
Take a look at any chart and see how it correlates to the VIX.
Mainly biotech and technology sectors gain from this because they are volatile to begin with.
Volatility is on your side.
All it takes is to know how to profit from it.
Do your research, monitor your investments daily or as often as you can and be diligent.
Remember the days when the wall street journal and stock quotes from your satellite were your go to, day after day.
Well now its the influx of information right in front of your eyes.
And it's free! Even a modest investment using volatility as your friend can yield 5%+ returns a month.
Timing is everything.
No one can time any investment perfectly but what you can do is stack all the odds on your side and limit your downside.
Its easier than ever and finding the tools to do it is as easy as clicking a mouse! Take the time to equip yourself the knowledge the pros have and take your investments to the next level.