Market Update
Quiet. Too Quiet. – May 7, 2012
by Russ Koesterich, Managing Director
iShares Global Chief Investment Strategist
Equity market volatility has been relatively low during the past six months, but investors should avoid assuming this trend continues. While we have seen some rise in volatility since March, by most measures equity markets still appear too quiet, particularly given lingering nervousness in the credit markets and lackluster growth. Given the current environment, we would expect volatility to rise and stocks to experience choppier trading in the coming months. Investors looking to insulate their portfolios should consider a more defensive stance, including an emphasis on size and dividends.
