Is Low Volatility a Contrarian Sell Signal?

Using a low level of volatility as a contrarian sell signal may not be a profitable trade. Instead, investors should focus more on the economic and corporate fundamentals. Continued economic expansion, still- accommodative monetary policies and solid corporate earnings are likely to keep the eight-year old bull market alive for a while.

Henry Ma is the President & CIO at Julex Capital Management, a participant in the ETF Strategist Channel.

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