“Higher Volatility Doesn’t Mean Stocks Will Suffer This Year”

From CNBC’s Bob Pisani on a recent DataTrek report: 

“Volatility has returned to the market in a big way, but that doesn’t necessarily mean lower returns for stocks.

What’s been weird about the markets is not the volatility, it’s how absurdly low volatility has been. According to DataTrek, in each year since 1958 the S&P 500 has on average gained or lost 1 percent or more on a daily basis on 53 days. That’s about 20 percent of the time every year, or about one day per week.

In 2017, there were only eight such days: eight days versus an average of 53 for the past 60 years.

So far in 2018, there have already been 11 days.

Is this a reversion to the mean? Sure looks like it.”….

You can read the rest of the article here on CNBC!