In equity markets, we’ve come to the point in the old western movie where our hero looks out over the horizon and warns that “it’s quiet out there…too quiet.” A run of low implied and realized volatility had some suggest that we’re somehow overdue for a big shakeout, not because valuations are high, but because it’s been such smooth sailing.
A recent NY Fed study put that theory to the test, and it comes up short. In general, realized equity market volatility is persistent and mean reverting, but there’s no tendency for a period of quietude to jump to a period of high volatility. Instead, when volatility is tame, the next month is more likely to also see below-average realized volatility, although over time a move back to the average is likely.
In a world where we are frequently hearing about email hacks and online security breaches, it’s hard to know what actions to take to keep your personal information protected. How much risk are you taking by performing simple tasks such as banking, sharing files or using social media? These are all generally safe activities, but naturally, there is some level of risk whenever information is shared over the internet. For that reason, we wanted to share 5 useful tips to help protect you against fraud and increase your overall security online – here they are for you:
1. Change Your Passwords Regularly
Simply changing your passwords often will reduce risk, but you can take it a step further by making your passwords hard to guess (e.g. no dictionary words). If you must use a word, avoid easy-to-guess terms like a spouse or child’s name, and add a number to the end. For example, “pineapple275” is a bit better than plain old “pineapple”. Also, consider using different passwords for different online platforms.