Low-volatility markets that are pushing new records seemingly each day are never a great setup for an investor to enter an equity position. Therefore, investors must find a different strategy to keep up with those generating yield that entered equities at better prices (like in February).
The Setup
While the VIX remains low and the markets continue to surpass previous record levels, the market remains within one of the tightest trading ranges this year. The market commentary has gone from the sky is falling in February to an all out equity party that exists today.
Charting the S&P 500 (SPY) against the CBOE Vix index displays the major market events over the last 20+ years. We can see "irrational exuberance" of the early 2000's and the mortgage crisis of 2008 alongside subsequent spikes in volatility measured by the Vix. Less noticeable, however, is that between late… Read More …