Investment Lessons Emerge from Unsettled Global Marketplace
Instant worldwide market reaction to the good or bad news of the day is typical of the current investment landscape, but there is much to be learned from the interconnectedness of global markets. It is no longer enough, for example, to think you have a diversified portfolio merely because you have exposure to both domestic and foreign stocks – they’re the same asset class and they act that way. The economic turmoil in Greece may seem to be regionally specific, but, from a stock perspective, what happens overseas can very easily affect markets everywhere. To be truly diversified, the modern investor may want exposure to commodities, currencies, cash and interest rate markets. Investors can watch for market volatility by using the Volatility Index (VIX) as a guidepost. The index is a measurement of investor complacency and fear. When it starts low and moves up, it’s telling you that fear is increasing – and that investors and traders are likely to start selling stocks – says Raymond James’ Chief Market Technician Art Huprich in this edition of Professionally Speaking, hosted by Larry Pugliese.You can access this audio presentation by visiting the Raymond James website at http://www.raymondjames.com/experts/huprich.htm To listen, you may have to download and install QuickTime, Windows Media Player or Real Player. The software is free, and the download should take only a few minutes.