Investing

Vol Mo

Volatility is a measure of the dispersion of returns of an individual stock or market index. Higher volatility tends to be associated with riskier securities and/or environments. Academic studies have shown that prices and volatility tend to be negatively correlated. In other words, when volatility is rising prices are falling. It’s not quite that simple …

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Investing

Rate Rapids

Interest rate volatility has become very topical recently. While rising rates can be detrimental to asset valuations, it’s the rapid rise in rates that has the most harmful impact, especially on long duration assets. For example, 20 and 30 year bonds have experienced the greatest losses in the bond market in the wake of the recent …

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Investing

Wilting Growth?

Growth stocks have noticeably underperformed over the past few weeks as interest rate increases have accelerated. While painful to experience for growth investors, the drop shouldn’t come as a surprise after growth stock’s meteoric rise in 2020. The chart below is the ratio of the iShares Russell 1000 growth ETF (ticker: IWF) versus the iShares …

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