Why Stock Market Volatility Has Officially Arrived
by Deborah L. Meyer, CPA/PFS, CFP®, CEO, WorthyNest LLC
Feb 21, 2018
3 minutes
Volatility is the name of the game, and we don't know when it is going to end. The Dow dropped more than 1,000 points two days within the same week: Feb. 5 and Feb. 8. Concerns over the bond market and inflation are capturing headlines, too.
There is an inverse relationship between interest rates and the value of bonds. In other words, the price of the bond falls when the interest rate rises. Thanks to quantitative easing after the, plans to follow suit.
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