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Here are two things investors should do during market volatility

Here are two things investors should do during market volatility

Finance
Though stocks have had a bumpy ride this week, most financial professionals will advise you to leave your long-term investments alone.Yet there are certain circumstances in which you might want to act.Consider what happened this week: The Dow Jones industrial average fell 724.42 points, or 2.9 percent, to end at 23,957.89 on Thursday, its biggest decline since Feb. 8. The S&P 500 dropped to 2,643.69 following a 2.5 percent decline.The sharp drops came as President Donald Trump unveiled plans to impose new tariffs on up to $ 60 billion in Chinese imports.In addition, news of the Facebook data leak has sent the company's market value down more than $ 50 billion this week and also had an impact on technology stocks.What's more, the Federal Reserve's decision to raise rates this week may h...
Oil prices decline, stock market rises as trade war fears subside

Oil prices decline, stock market rises as trade war fears subside

Business
March 8 (UPI) -- U.S. crude oil prices were trading lower Thursday and stock index prices moved higher as possible tariff exemptions in Canada and Mexico eased trade war fears.Brent oil futures opened at 64.54 and were trading down 57 cents at 11 a.m. EST.The April crude oil futures started the session at 61.33 and were trading down by 78 cents.The stock market opened with losses but quickly rebounded. The Dow Jones Industrial Average was up 134 points at 9:45 a.m. and eased to being up 31 points at 11 a.m. On Wednesday, the Dow Jones Industrial Average ended 82.76 points lower to 24,801.36 after falling more than 300 points."Today's market action was impacted by the resignation of Gary Cohn. That creates uncertainty," Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, ...
Market shocks should be a wake-up call for investors: Advisors

Market shocks should be a wake-up call for investors: Advisors

Finance
A period of very calm and quiet trading has lulled investors into a sense of complacency that, by some measures, has not been seen in years, according to some financial advisors.The recent sharp movements in markets have been a wake-up call for complacent investors, experts say. From February 2016-January 2018, volatility in the stock market was non-existent. Then, volatility came roaring back in February, as investors aggressively sold stocks after an incredible run. And now, some investors are concerned that the recent sell-off on Wall Street might get much worse and eventually that could trigger a recession.While many financial experts believe the current sell-off in the global markets is a "minor correction," some pundits see the increased possibility of another recession in the United...
Bets on low market volatility went spectacularly wrong

Bets on low market volatility went spectacularly wrong

Finance
THE Cboe Volatility Index, or Vix, known as the “fear gauge”, spikes when markets are most jittery. When Sandy Rattray, now at Man Group, an asset manager, worked on the Vix in the early 2000s, he and his team considered launching an exchange-traded product (ETP) linked to it, but concluded that it would be a “horror show” because of poor returns. Now, however, Vix-linked ETPs are a big industry, with around $ 8bn in assets. Formerly niche investments, they served vastly to exacerbate this week’s market turmoil, which saw the Vix’s largest ever one-day move, when it more than doubled on February 5th.The Vix was always intended as a basis for financial products as well as a gauge. Vix futures were launched in 2004 and options in 2006. “Long” Vix products, which Mr Rattray looked into, seek
How to interpret a market plunge

How to interpret a market plunge

Finance
FOR much of the past two years, market watchers have had little to write about, apart from the passing of one stock-index milestone after another. The events of the past week, however, have shaken the financial world awake. A recent, upward zag in bond yields seemed to signal the arrival of a new theme in market movements. Stock prices confirmed it, and then some. Over the past week, American stocks have dropped about 7%, punctuated by a breathtaking, record-setting plunge on Monday. The Dow Jones stock index recorded its largest ever one-day drop, of more than 1,000 points. In percentage terms the decline, of more than 4%, was the biggest since 2011.The swoon set tongues to wagging, about its cause and likely effect. There can be no knowing about the former. Markets may have worried that ...