10 Mar

Volatility Returns

March 7, 2020Printer-Friendly VersionVolatility has returned to global financial markets. As seen in figure 1 below, the Volatility Index (“VIX”) has spiked to the highest level since 2015. However, looking further back, the VIX is nowhere near the Great Recession of 2008-2009. History proves that volatility in financial markets is nothing new. However, since early 2009, the US markets have enjoyed a low period of volatility.Coming into 2020, the US Stock market was naturally elevated after a decade long decline in the VIX (figure 2). Price to Earnings (P/E) ratios were also elevated (figure 3). As seen in this chart, in the past high levels of P…

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4 May

Perseverance in Down Markets

May 4, 2015Printer-Friendly VersionThe first Sunday in April is always one of my favorite days of the year as it typically marks the final round of The Masters Golf Tournament. This year, defending champion Jordan Spieth entered the final 9 holes of the golf tournament with a 5 shot lead. He had been flawless through 63 holes and it was almost a foregone conclusion that he would march through the final 9 holes and be the first back-to-back champion since Tiger Woods in 2001-2002. He bogeyed 10 and 11. Then he stepped to the tee of the famous 12th hole, a 155-yard par three, the middle hole…

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