Not exact matches
Given that
valuations were
already rich when the VIX, a commonly used measure of S&P 500 volatility, was at 10, a doubling of volatility suggests stocks should be trading closer to 16 or 17 times earnings, not 21.
Longer - term, the market's
rich valuations on a variety of internals is
already enough to anticipate fairly unsatisfactory returns for buy - and - hold investors in the major indices over the coming 5 - 7 years.
Given that
valuations were
already rich when the VIX, a commonly used measure of S&P 500 volatility, was at 10, a doubling of volatility suggests stocks should be trading closer to 16 or 17 times earnings, not 21.
If
valuation appears
rich, I will avoid or possibly sell if I
already hold the stock.
Low - volatility strategies,
already operating from a baseline of low projected returns due to their currently
rich valuations, are particularly vulnerable to the impact of trading costs.