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Market Volatility Highest in Years
May 9, 2019


If the India Volatility Index (VIX) score is anything to go by, we are in for a turbulent ride ahead.

The India VIX Index measures the volatility expected over the next 30 days. It touched an all-time high recently.

Uncertainty over the general elections, trade war threats between US and China and rising crude oil prices have all contributed to widespread fear among investors.

While the 2018 correction was mainly due to corporate governance issues back home, the threat of macro issues looms large in 2019.

For you, dear reader, it is important to ignore the short-term noise of the mainstream media.

While the volatility index is high, it is no indicator of the market direction. The index was high during 2014 as well, prior to the elections. Post that we had a multi-year bull run.

I believe safe stocks with strong fundamentals will do well regardless the short-term volatility.

In fact, the volatility might just give you an opportunity to load up on these quality businesses.

Data Source: NSE India
*FY19 VIX Score as on 7th May 2019

This Chart Of The Day was published in The 5 Minute WrapUp - Forget the Elections, the IPL Teaches You More About Investing

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