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market volatility Archives

What is Market Volatility?

As long as there has been a stock market, there has been market volatility. But you might be worried about it too much. 

You don’t have to know very much about stock exchanges to understand that market volatility is part of the landscape. Some volatility, like recessions, crashes, and depressions, is so bad that they end up in the history books. However, most come and go with little fanfare outside of a few news stories here and there. 

As far as an actual definition, market volatility is the measure of how greatly stock prices vary over a period of time. And the VIX, properly known as the Chicago Board Options Exchange (CBOE) Volatility Index, measures market expectations of near-term volatility based on option prices among S&P 500 stocks.

Like many things, however, the severity of market volatility depends partially on your perspective. You can have volatility in individual stocks or across the entire market. Time also plays a role in overall volatility. 

What’s high and what’s low depends on the period you consider. For example, the ten-year period beginning at the start of the 2008/2009 recession saw the Dow Jones Industrial Average climb about 18,000 points. After the initial rebound following the recession, the market nosed down in the last half of 2011, and again in 2015 and 2016. And 2018 brought some huge market swings, as well. 

However, even with the ups and downs, every time in the last decade that the investor fear gauge (VIX) has made a quantum leap, and stocks have plummeted for weeks and sometimes months, it took less than a year for them to fully recover.

So while you should be leery of sharp declines, you should try to avoid stressing over minor dips. Remember, volatile stocks have the potential to bring you impressive profits.

If you’re curious about volatility, you might find our FREE report, Technical Analysis of Stocks, to be a robust addition to your knowledge base.

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Cabot Prime Pro Week Ending March 5, 2021

From the Cabot Prime Pro Week Ending March 5, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Prime Week Ending March 5, 2021

From the Cabot Prime Week Ending March 5, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Global Stocks Explorer 730

From the Cabot Global Stocks Explorer 730 issue of Cabot Global Stocks Explorer|by Carl Delfeld|Emerging Markets

The market is hitting a little turbulence, which is natural as it feels its way across the timing of the pandemic economic recovery, concern over debt, interest rates, and inflation.
Read More

Cabot Small Cap Confidential 262

From the Cabot Small Cap Confidential 262 issue of Cabot Small-Cap Confidential|by Tyler Laundon|Small Cap Stocks

The Big Idea One of the unsung heroes of the online retail boom is a largely unknown technology – digital printing on fabrics and textiles. While many traditional manufacturers and retailers of clothes, fashion items and home décor were destroyed during the pandemic, the inverse true...
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Cabot Dividend Investor Weekly Update

March 3, 2021|From Cabot Dividend Investor|by Tom Hutchinson|Dividend Stocks

The market has gotten a little choppy and interest rates are to blame. At least, that’s what they say. The market indexes fell last week and have been all over the place so far this week.
Read More

Cabot Undervalued Stocks Advisor 321

From the Cabot Undervalued Stocks Advisor 321 issue of Cabot Undervalued Stocks Advisor|by Bruce Kaser|Value Investing

We’re watching market sentiment gyrate sharply between “the economic reopening will boost earnings” and “the economic reopening will boost inflation”. Both outcomes are likely.
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Cabot Stock of the Week 337

From the Cabot Stock of the Week 337 issue of Cabot Stock of the Week|by Timothy Lutts|Stock Market

While some segments of the broad market have experienced a sharp correction over the past month (growth stocks in particular), the broad market has not fallen apart; in fact, many indexes hit new highs just last week. And, of course, today’s big jump rather...
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Cabot Prime Week Ending February 26, 2021

From the Cabot Prime Week Ending February 26, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Prime Pro Week Ending February 26, 2021

From the Cabot Prime Pro Week Ending February 26, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Small-Cap Confidential Weekly Update

February 25, 2021|From Cabot Small-Cap Confidential|by Tyler Laundon|Small Cap Stocks

The big picture for the market is that the uptrend is intact but under the surface we’re continuing to see pockets of turbulence. While the S&P 500 is just 2% off its high from last week and the S&P 600 Small Cap Index a..
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Cabot Global Stocks Explorer Bi-weekly Update

February 25, 2021|From Cabot Global Stocks Explorer|by Carl Delfeld|Emerging Markets

You may have seen that a relatively new Explorer idea, Fisker (FSR), was up 38% yesterday. It turns out that my analogy of comparing the company to Apple’s relationship to Foxconn was truer than even I could imagine. The news yesterday was that Foxconn will be a..
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Cabot Dividend Investor Weekly Update

From the issue of |by Tom Hutchinson|Dividend Stocks

Earnings have been sensational. Reported earnings for S&P 500 companies have grown an average of 2% in the fourth quarter, compared to an expected -11%.
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Cabot Income Advisor 221

From the Cabot Income Advisor 221 issue of Cabot Income Advisor|by Tom Hutchinson|Income Investing

Open-Up Stocks Thrive While the Market Struggles It’s been a rare down week in the market. But there’s nothing to be alarmed about. The S&P 500 is only down a little so far. And the uptrend that has existed for almost a year is intact. Even...
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Cabot Undervalued Stocks Advisor Weekly Update

February 24, 2021|From Cabot Undervalued Stocks Advisor|by Bruce Kaser|Value Investing

The stock market is clearly accelerating the “reopening” trade. Small cap and cyclical stocks as well as commodity prices are surging, interest rates continue to tick up (the 10-year Treasury yield is now 1.38%, up from 0.92% at year-end), and novel financial vehicles SPACs,...
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Cabot Undervalued Stocks Advisor Special Bulletin

February 23, 2021|From Cabot Undervalued Stocks Advisor|by Bruce Kaser|Value Investing

With the shares continuing to surge past our recently raised 65 price target, and now being priced at a premium to even our upgraded valuation metrics
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Cabot Stock of the Week 336

From the Cabot Stock of the Week 336 issue of Cabot Stock of the Week|by Timothy Lutts|Stock Market

With this week’s recommendation, I’m swinging back to the more conservative side with a solid technology company poised for big gains from the 5G communications rollout.
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Cabot Prime Week Ending February 19, 2021

From the Cabot Prime Week Ending February 19, 2021 issue of Cabot Prime|by Cabot Wealth Network|Cabot Prime

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Prime Pro Week Ending February 19, 2021

From the Cabot Prime Pro Week Ending February 19, 2021 issue of Cabot Prime Pro|by Cabot Wealth Network|Cabot Prime Pro

Stock Recommendation Tracker The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More

Cabot Global Stocks Explorer 729

From the Cabot Global Stocks Explorer 729 issue of Cabot Global Stocks Explorer|by Carl Delfeld|Emerging Markets

Some investors are bracing for the possibility that all this will lead to a surge in the cruelest tax of all – inflation.
Read More

Cabot Small-Cap Confidential Weekly Update

February 18, 2021|From Cabot Small-Cap Confidential|by Tyler Laundon|Small Cap Stocks

As mentioned last week, today’s Weekly Update will be an abbreviated version owing to the short work week and because of family commitments as our kids are out of school and I am solo parenting, making free writing time hard to come by. said,...
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