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Equities

Managing equity market volatility in 2024

December 22, 2023 - 6 min read

After several years of market volatility, many investors are wondering what’s next. Will interest rate uncertainty cause volatility spikes again in 2024? What macro risks are on the horizon? Are there ways to help manage elevated volatility in this environment?

For views on volatility and ways to manage it in portfolios, Investment Strategist Luke Palmer asks options investing expert Michael Buckius, CEO, CIO, and Portfolio Manager of Gateway Investment Advisers, to share his insights. Video highlights include:

  • Higher volatility of Covid era: The VIX, a popular measure of the stock market's expectation of volatility based on S&P 500® index options, has been at higher levels since the pandemic.
  • Direction of interest rates and equity volatility: How higher for longer interest rate Fed policy or rate cuts in 2024 may impact equity market volatility and the price of options is explained.
  • Catalysts for volatility in 2024: While there are many positive macroeconomic factors to consider for equity investing in 2024, geopolitical risks, a presidential election year and US deficit issues should keep uncertainty and volatility in stock markets.

CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Investors should fully understand the risks associated with any investment prior to investing.

This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of November 21, 2023 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted, and actual results may vary.

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