• Stephen Walters

Turbulence around uncertainty

The Chicago Board Options Exchange [CBOE] maintains a very useful chart of market-volatility in USA. As the Dexterity portfolio is 55% invested in US companies, the chart is a useful indicator to me of jeopardy. Owing to inflation rising everywhere, and the advent of omicron too, the volatility needle has risen to 30.

At this point it would be natural to ask “shall I sell everything, and wait to buy again at a cheaper price?” Whenever my timid self asks this question, promptly from my inner counsellor comes the response “spikes are generally so brief, you’ll probably miss the moment to buy back in. By the time the volatility has fallen back to 20, prices have recovered.”

I’m for staying put. If I had more money to invest, I’d be adding it to the more resilient of my holdings.