Equities Have Little to Fear Now Fear Itself Has Made a Comeback
- Anxiety near highs is historically long-term positive: Sundial
- Investors have hard time seeing upside catalysts: Susquehanna
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Wall Street’s fear gauges are sounding some alarms after the S&P 500’s worst week in almost three months. But that’s actually a good sign for this bull market longer term, according to Sundial Capital Research Inc.
While options trading shows that implied volatility has climbed, the actual level of price swings is easing down toward long-term lows. That kind of divergence traditionally has signaled near-term pain followed by long-term gains.