WSJ: "Stocks Were Unusually Quiet in June. Traders Think That Is About to Change."

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WSJ: "Stocks Were Unusually Quiet in June. Traders Think That Is About to Change."

Excerpt from The Wall Street Journal quoting DataTrek co-founder Nick Colas:

…. “In turn, any surprising economic data, corporate news or monetary-policy news tends to “hit the market harder than they otherwise might,” said Nicholas Colas, co-founder of DataTrek Research, in an emailed note.

“And since volatility and returns have a negative correlation, this dynamic can make for difficult investment environments,” Mr. Colas said…

…The Cboe Volatility Index, often used by traders to bet on or hedge against swings in the market, has also tended to rise through the summer months. In the 2010s, the VIX logged an average increase of 17% from the end of June through the end of August, according to Mr. Colas. The VIX tends to rise when stocks fall and retreat when stocks rise”…

You can read the full article here on The Wall Street Journal!