7.9.21 Is This the Start of a Correction?
The S&P 500 Index closed at a record high on Wednesday, yet investors seem increasingly on edge with the VIX Index, a measure of implied volatility on the S&P 500, spiking nearly 40% week-to-date. We won’t bury the lead here, our answer to the title is simple: this could be the start of a correction, but we aren’t betting on a significant decline in the S&P 500 and here’s why.
First of all, it is important to remember that corrections are a normal part of investing and there are plenty of reasons why stocks could pull back here. Just last week, we published Three Things That Worry Us, and highlighted... Read more