Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube

  Investors Need to Adapt to Higher Volatility
Posted Under: Broader Stock Market
Supporting Image for Blog Post


View from the Observation Deck

  1. The VIX Index uses S&P 500 options activity to gauge investors' expectations of volatility. It represents a 30-day measure.
  2. A VIX reading over 30 indicates higher levels of volatility. Investors may become more cautious about equities when readings are that high or higher.
  3. In 2008, a year shaped by the global credit crisis stemming from the subprime mortgage meltdown, the VIX Index hit a record-high of 80.86. 
  4. The VIX, however, averaged 21.83 for the 10-year period ended October 2011. This average reading is closer to the norm.
  5. The period referenced in the chart was selected for the similarity in its initial VIX reading (32.45 on 5/6/09 ) and its last reading (32.13 on 11/28/11).
  6. While the beginning and ending readings are comparable, both are above 30 and the VIX exceeded 40 on a number of occasions.
  7. Despite the spikes in volatility, the S&P 500 posted a cumulative total return of 36.80% from 5/6/09-11/28/11.
Posted on Tuesday, November 29, 2011 @ 3:44 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

US Economy and Credit Markets ended November 25, 2011
US Stocks Week Ended November 25, 2011
A Key Indicator Helps Track the Demand for Platinum
US Economy and Credit Markets ended November 18, 2011
US Stocks Week Ended November 18, 2011
Peeling Back the Onion for a Closer Look at Emerging Markets Equities
Companies Repurchasing Stock at a Better than Average Clip
US Economy and Credit Markets ended November 11, 2011
US Stocks Week Ended November 11, 2011
Earnings Growth May Be Decelerating but Earnings Haven’t Peaked
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.