Volatility is healthy and a sign that markets are normalising, argues Darius McDermott, before considering how advisers and their clients can make the return of volatility work for them
Up until a couple of months ago, an eerie sense of calm had settled across markets. The VIX index - one of the most commonly-used gauges of market fear - continued to fall to new all-time lows during the second half of last year. In January, it came within touching point of reaching yet another record low. Of course, nothing lasts forever - especially not when it comes to markets - and, in February, volatility suddenly spiked as equities sold off across the globe. According to FE Analytics, over the first three months of the year, the VIX was up by a substantial two-thirds. This is p...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes