Gavekal: Stock Market Correction and Volatility Risk Increase

October’s stock market correction was a game changer, says a research report from Evergreen | Gavekal.

Unlike previous market corrections, the report notes October’s relatively deep and protracted correction caught investors by surprise, as the S&P 500 fell nearly 10 percent in a matter of weeks. This was something that had not happened in more than two years, shocking investors. But it is what will happen in the future as a result that is most important.

Stock market correction appears to be back

Report author Jean-Yves Dumont thinks steeper and longer corrections appear to be back, and going forward we could see volatility spike higher.  Noting a pattern of investors previously buying after sell-offs, Dumont thinks this could translate...