Silver as an investment

Low Volatility Will Make The Next 5% Drop In The Dow “Feel Like 1987”

zerohedge.com / by Tyler Durden / Jul 31, 2017 

The VIX has recently flirted with its all-time closing low, analysts worry that volatility has been so low for so long that analysts are worried that the next sizable negative shock will cause investors to panic and dump their holdings.

Other than a handful of selloffs over the past couple of years (Aug. 2015, Jan. 2016, June 2016), Federal Reserve-led easing has guided markets steadily higher since the crisis. As MarketWatch reports, The Dow hasn’t experienced a 5% drop since 2011, and before that a 5% drop hadn’t happened since 2008, when there were 9 such drops. The blue-chip index closed at a record high on Friday, leaving it just 200 points shy of 22,000. At this level, a 5% selloff would equate to a 1,100-point, one-day slide in the gauge – an eye-popping four-digit drop.

READ MORE

The post Low Volatility Will Make The Next 5% Drop In The Dow “Feel Like 1987” appeared first on Silver For The People.