THE NEW YEAR WELCOMES INCREASED MARKET VOLATILITY, BUT WALL STREET THINKS IT’S NOT HERE TO STAY

As 2022 begins to unfold, the rollercoaster markets continue and investors try to gauge the potential impact of everything from Fed tightening, to the lasting effects of the pandemic, and geopolitical conflict like the Russia-Ukraine tensions. Markets are becoming more unstable, as evidenced by the recent fluctuation toward correction territory. Markets were down over 1,000 points, rebounded and stood unchanged at the closing bell on a single January day. This dramatic shift was reminiscent of March 2020, when the markets were up 1,000 points and down 2,000 almost every day. Although volatility has come in during February, January saw a push towards all-time highs with the volatility index (VIX) closing above 30 late in the month, compared with an average around 19.5.

Gerry Davis, Managing Director of Morrow Sodali's Capital Markets Intelligence group, explores the trends surrounding recent market volatility.  

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