The markets have been steadily rising for a year. In fact, it has been growing so steadily that you almost could have bet that it would go up every day this year and been right. While that may sound great in theory, the reality is quite different. CNBC reports that:
A reversal of recent low volatility in markets, paired with a rethink by global investors on the attractiveness of stocks, could have “devastating” effects, according to Gina Sanchez, CEO of Chantico Global.
The movement in the markets in recent days may, according to Sanchez, be a sign of things to come. Because the market has been so steady, the risk of sudden volatility combined with a market correction could be disastrous, she explains.
“If that starts to unwind at the same time that the markets start re-rating, you’re not just going to get a pop, you’re going to get an even bigger unwind in volatility, and it could be actually quite devastating,” she warned.
Investors should be aware that this sort of phenomenon is entirely possible. The reality is that this year has marked unprecedented steadiness in the major indexes and that one should never get too comfortable with the status quo. Smart Money Press has several links to articles on safe investments that investors could consult for ideas.
To learn more, go to cnbc.com. To receive more financial news updates, subscribe to our free newsletter.
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