Capital Ideas

Investment Insights from Capital Group

Market Volatility
Volatility is near historic lows, but don’t get complacent

U.S. equity markets have been calmer in 2017 than any year in more than two decades. The CBOE Volatility Index (VIX) touched all-time lows. The S&P 500 Index has declined by more than 1% on only four days. And if the trend continues, this year would be the first since 2006 without a single 2% daily decline. But even so, investors should not get complacent. While market volatility is lowglobal volatility is not, and any number of unexpected events could trigger panic selling and a sudden spike in volatility. But neither should investors overreact. Prudent investors take a long-term view. They view higher volatility as a potential opportunity to find undervalued stocks rather than a threat to be feared.

The S&P 500 Composite Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2018 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.

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