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.
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.
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.
MSN Money on Twitter and Facebook@msn_money and @topstocksmsn
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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.
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The S&P 500 manages to keep a deathgrip on 2,000, but key areas of the market are already buckling under pressure.
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