Not exact matches
Such spikes
in stock market volatility usually aren't one - off events and
tend to be followed by aftershocks, said Olivier Korber, a Societe Generale FX and derivatives strategist.
Although value
stocks typically hold up better
in times of
volatility, this bull
market has been exceptionally smooth — up until the last year, that is — and favored high - growth momentum
stocks, which
tend to have more expensive valuations.
In previous sell - offs within this bull
market (and since 2009, there have been a few),
volatility tends to peak before
stocks ultimately find a bottom.
As the Fund tracks the US
stock market excluding the S&P 500 Index, which comprise 500 large cap companies, the companies tracked by the Fund would be significantly smaller
in market capitalization, and would
tend to be less mature with higher
volatility.
Dividend
stocks are enticing to investors during periods of
volatility because
in such a
market they
tend to perform well relative to more growth - oriented or higher - risk equities.
The convertible instruments will
tend to move
in about the same direction as the underlying (what it can be converted to) but less violently as they are traded less (lower
volatility and lower volume
in the
market on both sides), however, they are not being used to make a profit so much as to hedge against the
stock going up.
Less volatile
stocks tend to outperform their higher
volatility counter parts
in bear
markets, while the high
volatility stocks tend to outperform
in bull
markets.
Treasuries, which are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest, are considered the most stable fixed - income investment, and rising Treasury yields, as occurred
in early 2018,
tend to put downward pressure on munis.8 However, Treasuries are more sensitive to interest rate changes, and
stock market volatility makes both Treasuries and munis appealing to investors looking for stability.
In a strong bull
market, higher
volatility stocks tend to outperform lower
volatility stocks.