In the last month, the U.S. stock market is down just 0.8 percent, but it’s been a bumpy ride: Since Dec. 9, the S&P 500 has had a 4 percent selloff, a 6 percent rally, and a 4 percent drop that ended Thursday with a two-day gain of 3 percent. Equities were hit hard again Friday – down almost 1 percent.

Investors made queasy by the sharp selloffs and snapback rallies might want to prepare themselves for more of the same. A growing number of market watchers say the low-volatility regime that dominated in 2013 and 2014 has ended, and the roller-coaster ride going on now has become the norm.

“This year has the potential to be a very good year for stocks but we will see more and bigger spikes in volatility,” said Brian Reynolds, chief market strategist at Rosenblatt Securities in New York.  Read More…

7 Comments

  1. The Loonie has been taking a hit and i blame Harper and his obsessive focus on XL Pipeline.

  2. Ah oh! This is starting to look like 2008 all over again 🙁

  3. Investing will always be a up and down game. You just have to be patient and not panic on the first sign. Ride the wave is the best strategy.

  4. Not a good start to 2015 that is for sure. Don’t forget that oil prices have plumetted. What’s going on?

  5. This seems to be a self-fullfing profecy because we have been talking about a large sell-off for years and now because its the New Year people are feeling anxious and making it happen.

    Just like previous years it will take until April before we truly know and the public is more comfortable. I still forsee a bull market.

  6. Just pulled my holdings in real-estate. Vancouver market is finally going to crash and don’t want to be in before it happens. Time to take the gains folks!

  7. It’s true that VIX index is historically what people look to when trying to preceive risk but if you look at its track this happens each year around this time.

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