Future of the Euro Continues to Vex Markets but Volatility Remains in Normal Range
Europe continues to vex the markets. Greek elections are next weekend and contingency plans are being laid for the possibility of a Greek exit from the eurozone. Despite a bank bailout, Spanish bond yields remain under pressure. The entire future of the euro may be hanging in the balance. Wait… and the VIX (CBOE volatility index) is only hovering around 22? This is a far cry from the levels in the 40’s the VIX was experiencing last summer, or the even higher levels it reached in the summer of 2010. This is normal volatility. As discussed in the Global Perspectives Monthly Commentary, ample rewards still await disciplined investors who can look across this valley of temporary volatility and stay focused on long-term goals. Please see the monthly commentary for a more in-depth discussion of navigating current markets.