Time to “lock in” 2024′s stock market gains? With the TSX hitting sporadic new highs – and this summer’s volatility – many investors
Fear of heights is common around all-time highs, like now. But record highs don’t indicate where stocks are headed. Bull markets often feature dozens of them! But volatility and negativity are not synonymous. Up 1 per cent and down 1 per cent are similarly indicators of volatility. But with stocks, volatility overwhelmingly is up more often than down – by about two to oneConsider the U.K.’s FTSE All-Share Index for its long history: Eliminating volatility means missing the 62.3 per cent of all months and 72.7 per cent of years it rose in sterling since 1924. Or, similarly, the S&P 500′s 63.1 per cent of up months and 73.
Even small inflation upticks could eat all your yield. Always remember: Even mild growth requires some volatility. Without downside volatility, there is no upside. Ever!