Wall Street whiplash: Stocks’ volatility looks here to stay

Recent volatility in equity markets has sparked concern among investors as they have watched all of 2018’s returns vanish without a trace. This has been particularly nerve-racking for new investors who entered the market after the Great Recession and have never experienced a bear market or even a major correction for that matter. They have grown accustomed to the relative lack of volatility and near certainty of rising asset prices over the past 10 years, thanks in large part to the Fed’s historically low interest rates and massive monetary stimulus packages. ┬áNow that the economy is finally being weened from it’s artificial support system, withdrawal symptoms are to be expected, including the sober realization that many assets are way overpriced and must eventually return to the mean…and that means this roller coaster ride has just gotten started!

Source: Wall Street whiplash: Stocks’ volatility looks here to stay

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