Volatility...a word of our future?
Welcome back volatility Volatility has returned to the market after an unusually calm year in 2017 and a strong January 2018. There is no one reason for this that anyone can point to. The Dow dropped a record 1,175 points and equity markets had their worst performance in two years.
Rising interest rates, potential for increasing Fed action, computer-based trading and the extremely strong rally in equity markets over the last five months have all been cited as possible reasons. Yellen and Greenspan, former Fed Chairs, comments regarding market valuations could have also caused investor concerns. The recent market decline and rising earnings estimates have caused a 10% decline in valuations.