Why investors should prepare for heightened volatility now
August 08, 2024
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3 min read
Joseph Ferrara
VP, Investment Strategist – Gateway Investment Advisers, LLC
A historical perspective of market volatility, heightened volatility during presidential election cycles and Fed policy changes, and how investors can better prepare portfolios for choppy markets are covered by Joe Ferrara, investment strategist at Gateway Investment Advisers, in this video.
- Fall factors: Historical data of the VIX® (Cboe® Volatility Index) dating back to 1990 shows September to December months have been more turbulent than summer months.
- Election volatility: The market is pricing in heightened volatility through the presidential election, as viewed in the VIX® futures curve in July 2024.
- Quality factor: High-quality companies have historically performed throughout market cycles, regardless of macroeconomic conditions, according to Gateway Investment Advisers research.
- Low-volatility equity: One way investors may help to smooth out turbulent stock market movement in their portfolios is through the use of low-volatility equity strategies.
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 July 25, 2024, 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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