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 Investors Will be Wary of a more Tumultuous Period Ahead

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fxpulsation




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Join date : 2012-01-25

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PostSubject: Investors Will be Wary of a more Tumultuous Period Ahead    Investors Will be Wary of a more Tumultuous Period Ahead  Icon_minitimeTue Sep 04, 2012 11:14 am

Investors Will be Wary of a more Tumultuous Period Ahead


-August saw major equity indices post tidy gains, thanks to the ECB's pledge to do whatever is necessary, and in part to the Fed, despite a worsening global economic climate. In the case of the Eurostoxx 50, EU equities have put in a sequence of three successive positive months in Q3, the first time the index has done so since the winter of 2010/2011.
-Investors will be wary, however, of a more tumultuous period ahead, with losses of September 2008 and 2011 buried deep in their psyche. The standard deviation falls from 7.3% to 5.2% if we exclude the stretch of 1999 to 2004, two percentage points below the average of October, the traditional bête noire of equity markets. The VIX is currently 5 points below the average of 22.2 since 1999.


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