Ken Fisher Discusses Whether Stocks Are More Volatile Today Than Ever Before.

Market volatility is a common and normal feature of stock markets. But, are stock prices more volatile now than they have ever been? In his latest video, Fisher Investments’ founder and Co-Chief Investment Officer Ken Fisher explains why he believes fears of historically high market volatility are misplaced.
Investors should expect short-term volatility, which is ever-present and essentially unpredictable. But for investors who worry stocks are more volatile now, Ken Fisher encourages them to remember their longer-term stock market history. “Stocks used to be much more volatile than they are now,” Ken says. The further back in history you look, the more volatile stocks seem to have been.
Ken points to the number of trading days with large percentage moves—days where markets move by 1%, 2% or more. Over the decades, markets have seen fewer and fewer days of big percentage moves. Ken says that’s down to two factors: broader stock markets and more liquidity. Modern stock markets have more diverse sectors, industries and companies than those of decades past, which naturally helps lessen market volatility compared to previous narrower markets. Ken also points to a measure of market liquidity called the bid-ask spread, or the difference between the price buyers are offering and the price sellers are asking. The greater the average bid-ask spread, the less liquid is the market and the greater the chance for volatility. Over time, that spread has generally narrowed, helping keep a check on volatility.
If you would like to learn more of Ken Fisher’s and Fisher Investments’ thoughts on capital markets, visit us at https://www.fisherinvestments.com/en-us.
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Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.

Видео Ken Fisher Discusses Whether Stocks Are More Volatile Today Than Ever Before. канала Fisher Investments