Schaeffer’s Investment Research has been one of the industry’s top investment research firms since 1981. The experts at Schaeffer’s Investment Research recently discussed if we can expect more volatility in Wall Street this summer.
“The pandemic has thrown Wall Street for a loop,” Schaeffer’s Investment Research experts said. “And that doesn’t appear to have stopped even though cities across America are beginning to operate much more ‘normally.”
The experts stated that the pandemic has been an excuse for market volatility for more than one and a half years now. However, as towns and cities begin to open again, the market may continue to face volatility. This is likely because investment choices made during the pandemic are still relevant now.
“Right now, stock-market volatility is at its lowest during the pandemic,” Schaeffer’s Investment Research experts said. “This is great news. We’re seeing stocks at record highs, but COVID-19 variants are still in the air, so we may need to continue to be cautious a little while longer.”
The experts stated that volatility may become a bit higher as investors worry about inflation and other variants due to the pandemic. Volatility is at its lowest since the pandemic began, but this calmness may not entirely endure the next several months.
The market has seen some major investments buy huge amounts of VIX call options, which indicates these investors expect volatility in the next few months. Investors remain optimistic, but they are concerned about possible looming inflation. In addition to worries about inflation due to economic growth, investors remain concerned with the COVID-19 pandemic, as well as sporadic increasing in some types of trading activity.
“We’ve seen sporadic spikes in some types of market activity throughout this pandemic,” the Schaeffer’s Investment Research team said. “So we can expect to see more of these spikes as some areas begin to look more normal.”
The experts stated that an example of a sporadically heightened rise in activity was a major growth in stocks like GameStop and other electronics companies as the pandemic took hold. These changes spikes have happened throughout the pandemic as health concerns and personal interests change.
“We may be able to dodge the bullet of market volatility this summer, but it’s important to be on your toes during this rare time in history,” Schaeffer’s Investment Research specialists concluded. “We’ve seen recent decreases in volatility, but be sure to check in with our newsletters and Monday Morning Outlooks for the latest investment news.”