Why Investors Have No Fear of Recession (9/6/23)

(9/6/23) Markets are doing okay, down a little bit yesterday, interest rates were up a bit because of oil prices; markets continue to do what they do during this August-September correctional period. But a look at the Volatility Index (VIX), which is very, very supressed right now, has picked up in recent days due to the choppiness of the market. But as a whole, volatility is repressed relative to where we've been historically. Investors seem to have no fear of a correction in the market, nor of recession. But historically, these periods of low volatility have always preceded a bigger market correction. What triggers that? Who knows? Note also that dividend yields are lower than where they should be in this market, suggesting that yields will be higher in the future. But in order for yields to go up, stock price have to come down. Not knowing when or what will cause the change is unsettling, which is why volatility is one thing to watch as an "early warning signal" for changes up ahead. Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton -------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Watch the video version of this report by subscribing to our new "Before the Bell" YouTube channel: https://www.youtube.com/watch?v=wO8bZRTgK0w&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Articles mentioned in this report: "Mega-Cap Stocks Continue To Dominate. But Why?" https://realinvestmentadvice.com/mega-cap-stocks-continue-to-dominate-but-why/ ------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #MarketRally #Volatility #VIX #Yields #StockPrices #MarketCorrection #Recession #Money #Investing