Ask an expert: Is the market getting more volatile?

MSN Money's Anthony Mirhaydari explains the market's recent swings and what investors need to keep watching closely.

By MSN Money Partner Jun 21, 2013 11:33AM
As of Thursday, the S&P 500 ($INX) has moved plus or minus 1% six times since the beginning of June -- just 14 trading days -- according to TheStreet. So, should investors expect more volatility to come?

In this prescient video, taped a few days ago, MSN Money columnist Anthony Mirhaydari summarizes the markets swings prior to the two-day swoon Wednesday and Thursday. Mirhaydari discusses what's causing the volatility and what might be on the horizon. Much of what he says could happen indeed already did in the last two days. See what he thinks could be happening next.

Arrows (© Image Source Black/Getty)Volatility ($VIX) has spiked since May 22, when Federal Reserve Chairman Ben Bernanke first hinted that the Fed may begin to rein in its stimulus measures, according to Reuters.

But it's not just fear of Fed tapering that's driving volatility, Mirhaydari says. Perhaps a more important concern is the weakness in Asia. While the Fed may have generated the sell-offs in the past two days, other worries are also certainly mounting, especially in the face of the recent slowing Chinese manufacturing data and the volatile situation in Japan.

As Mirhaydari warns that could happen, the S&P 500 has closed below its 50-day moving average. The only other time that happened this year, the index immediately bounced back, according to The Wall Street Journal. The Dow Jones Industrial Average ($INDU) also closed below its 50-day moving average. Other signals, Mirhaydari says -- even before the recent two days -- mean investors should certainly be cautious.

The discussion about the markets, volatility and what to expect next continues over at MSN Money's Facebook community.

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6Comments
Jun 21, 2013 1:32PM
avatar
It's like a bunch of damn chickens running around with their heads cut off. What ever happened to "investing" for a period longer than two minutes?
Jun 21, 2013 11:55AM
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In the beginning, there were many individual investors, all making decisions based on some fundamentals and lots of hype. (Exhibit A- Tulip Craze circa 1600s).

Now..there are just a few hundred individuals (call them "managers") making decisions
based on largely the very same elements, except that all the volume and velocity are
exacerbated by HFT platforms and larger-than-ever desires to beat the other guy out the door.


So, is the market volatile?  I dunno...you be the judge.

Jun 21, 2013 1:27PM
avatar
What people forget is when the Dow is down 150 points,it`s only 1%.
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