Editor's Note: Here is an insightful piece from Karim from two months ago about the state of the market. At the time of this writing (on May 12, 2022), the CBOE Volatility Index (VIX) was set at 33.74. Things have cooled down since then, with the "Fear Index" now sitting around 26.50. The put-call ratio has also dropped a bit, from 0.81 to 0.62, meaning investors have been buying more calls and fewer puts. Both signs point to an improving market environment, but is the sell-off over? Read the full article below to see the writing on the wall.
Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Is the sell-off over? That is a question people are always asking. They want to know when it's safe to jump into the market again. Why? Well, for the past century, there has been no better place for the average individual to grow their wealth than the stock market. Even if you had invested at the top of every market cycle to date, you would still be ahead of the game. Imagine that... You put your money in at the absolute top but still came out ahead. At the end of the day, investing is about achieving staying power and leaving fear behind. No one will ring a bell when the market bottoms out. However, there are great signs to watch for. |
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