S&P 500 Volatility Streak Worst Since ?12 As Swings Widen
Volatility in the U.S. stock market is getting harder to ignore with each passing day, a trend Goldman Sachs Group Inc. says is poised for a reversal.
The Standard & Poor?s 500 Index (VIX) rose 0.5 percent yesterday and moved 1.3 percent from its lowest to highest levels. That?s the 14th straight swing of more than 1 percent intraday, the longest stretch since an 18-day run ending on June 21, 2012, data compiled by Bloomberg show.
Daily moves in the U.S. equity benchmark have almost doubled from 2014 as oil?s decline spurred concerns about deflation and earnings estimates fell the most since 2009. While investors are the most rattled they?ve been since Europe?s debt crisis more than two years ago, an accelerating U.S. economy should calm them down, according to a Jan. 20 client note from Goldman Sachs derivatives strategists.
?The rollercoaster markets have been on has been unsettling for the public at large to see,? Mark Luschini, the chief investment strategist for Philadelphia-based Janney Montgomery Scott, which oversees about $68 billion in assets, said by phone. His message to clients: ?Don?t let it shake you out of your positions. The fundamentals haven?t changed.?
Even as crude prices have been cut in half since June, gross domestic product grew at a 5 percent annual rate in the third quarter, the most in 11 years, and the U.S. labor market just capped its best year since 1999.
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