QOTD: The Perfect Correlation

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...volatility has a nasty tendency to spike. And as AQR’s Cliff Asness explained, it can also be sticky: “When the market is volatile your best guess for next month is that it will be more volatile.” During September, the VIX began to creep up, ending the month at 16.3. Then, on Oct. 15, it spiked to above 31.

One thing I’ve learned over the years is that there’s a perfect correlation between a rising VIX and the volume of forecasts in the financial media predicting doom, as well as the number of calls and emails I receive from nervous investors and advisors.

Swedroe: How To Think About Bear Markets (ETF.com)

– from Larry Swedroe, Buckingham Asset Management, hit the link above for his take on how investors should think about bear markets.

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