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Don't Fear Volatility

Don't Fear Volatility

March 23, 2018

This is a Wesbury 101 video by First Trust Chief Economist Brian Wesbury, a respected professional that we know and trust.                                                                         

 According to Brian, many investors have a phobia when it comes to volatility. They think volatility itself signals an unhealthy market.

You may recall in 2016, two events were blamed for creating higher than normal levels of market volatility; Brexit and the US Presidential election. Those fears appear to have been vastly overrated, as 2017 followed up with solid performance in the US stock market.

Presently, corporate profits are rising and taxes have been reduced. These are bullish signs. Even if higher interest rates are factored in, as Brian explains, he and his team believe that US stocks remain undervalued. Thus his mantra, which we embrace, is to not fear volatility but embrace it and the buying opportunity it creates for those who have excess cash that could be deployed.

Click HERE to watch: Don't Fear Volatility