In this episode of Markets in Motion, Bruce Campbell examines the surge in market volatility as geopolitical tensions ripple through global markets.
Bruce begins by highlighting the recent spike in the VIX volatility index. In periods like this, he explains that investors often take a more cautious approach, waiting for volatility to cool below the 20 level before making significant portfolio moves.
Technical indicators also suggest markets may be approaching a potential bottom. Bruce points to signals such as the relationship between the three-month VIX and the current VIX, as well as the three-month VIX pushing above its Bollinger Band — both indicators that historically can precede a market stabilisation.
Despite the volatility, some sectors continue to show strong momentum. Energy has been the standout performer in the U.S. market, extending a streak of 11 consecutive weeks of gains. Materials and industrials are also showing relative strength.
However, Bruce notes that broader sector rotation signals a more defensive stance among investors. Utilities, REITs and consumer staples are gaining ground in both U.S. and Canadian markets, suggesting a shift toward risk-off positioning as uncertainty increases.
Finally, Bruce looks at precious metals. Large inflows into gold and silver ETFs — including the SPDR Gold Shares ETF — have driven significant price volatility in recent weeks. Heavy investor crowding into these trades can often lead to short-term reversals, which helps explain the recent swings in the metals market.
Watch the full video above, and check back for next week’s episode.
Join the discussion: Check out Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
