Increased volatility in the U.S. stock market has been a recent topic of debate in the ﬁnancial media. As a typical rule of thumb, when stock markets go down, volatility goes up. From Presidential tweets to the Syrian conﬂict to rising interest rates, many different topics have served to weigh on the stock market in 2018, resulting in a subsequent rise in volatility. The question becomes: is it such a bad thing to see relatively higher volatility?
From the market bottom on March 9th, 2009, the U.S. stock market, as measured by the S&P 500 Index, has rallied approximately 290%. Investors have experienced a nine-year bull market in stocks—so far resulting in one of the longest lasting rallies ever experienced in U.S. markets. And while the U.S. and global economies remain strong and growing into 2018, investors and economists alike continue to wonder how long the bull market can run.