Over the last few months, we’ve been reminded that the stock market tends to be a roller coaster ride in the short-to-medium term.
Volatility has increased as the current market’s rally has gotten a bit long in the tooth. The recent swings have been especially jarring considering just how low volatility was in the preceding years.
But according to BlackRock, we shouldn’t be surprised by this. Today’s environment is much more like how the market should be acting. And that poses a bit of a problem for investors. Barring any major market catalysts, we could be looking at lower returns for the year. In the end, high volatility and minuscule gains go hand in hand.
Read more about measuring and monitoring risk here.