- The Fed is changing its stance, and so may the stock market. Instead of a relentless march higher in equity prices, we may be in the midst of a 15-18 month trading range as the battle between the bulls and bears rages on.
- Volatility in the market tends to reduce over time, everything else being equal. That lower volatility is a natural stabilizer for equity prices.
- In a more volatile market, traders need to increase their hedges and are forced to sell when others are selling. That would be the pain trade going forward.
For further details see:
We May Be In A Trading Range