Volatility is back. The only certainty is uncertainty.
For over a decade, 2014-2025, we had lower-than-average volatility. The CBOE Volatility Index (better known as the VIX), which represents the expected annualized volatility of the S&P 500, averaged 17.9. That’s significantly below its long-term average of 19.5. In fact, volatility in 2024 was the lowest since 2019, before the pandemic.
However, with heightened global geopolitical tension, inflation concerns, increasing recession risk, uncertainty over tariff policy and the potential for retaliatory trade wars catalyzed by an administration that has “unpredictability” as a brand, the only certainty is uncertainty. Volatility thrives under uncertainty. As evidenced in early April, with the sudden collapse in stock and bond prices and in the equally sudden recovery in late April and May.
So, what’s next? Are YOU prepared?
Keep in mind, we’re still in the early innings of Trump 2.0, with more than 3+ years remaining on a promise for major transformation of government and a complete overhaul of historical trade relations. There is no scenario in which a change of that magnitude doesn’t lead to continued high volatility.
Investors seeking to reduce risk and Improve performance can incorporate Niche Options-Based strategies that move independently of the market with the ability to exploit volatility.
Execution is Everything.
The experts at Sizemore Capital invite you to join us and learn about the benefits of active management and niche option-based strategies in an age of chaos, crisis and conflict.
We will cover:
Register here to join us on Wednesday, May 21 at 11:30 Eastern / 10:30 Central.