Recent calm in U.S. stock trading doesn’t mean a market storm is on the horizon, according to Rod Smyth, chief investment strategist at River Front Investment Group LLC. “Extremely low levels of volatility (like today) can last for a long time, and while they are sometimes followed by bear markets, this fact by itself is far from a reliable signal,” Smyth wrote in a report Tuesday. He drew his conclusion by tracking a one-year average of the S&P 500 Index’s daily price swings, similar to the 200-day moving average shown in the chart.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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