Why Volatility Matters
Volatility, in other words, is high. The term is essentially a measure of how much an asset’s price moves in a given period – a low-volatility bond might not go up or down more than a tenth of a percent in one day, while a high-volatility stock could shoot up or down 10s or even 100s of percentage points.
There are even indexes, like the Volatility S&P 500 (VIX) which allow investors to track and place bets on how jumpy the markets will be. Full Post…
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