https://www.websinv.com/assets/20250630_low_vol_good_sign-oYxO2wvo.js

1import{j as e,G as i,f as n,r as o,C as l,H as c,L as d}from"./index-C_oGcSMn.js";const t="/assets/image1-DOFgSmUb.png",h="/assets/image2-8j6MhR-s.png",s="Why Low Volatility Can Be a Good Sign for Equity Investors",r="Did you know that periods of low equity market volatility are often associated with higher and more stable returns?",a="2025-06-30",g="20250630_low_vol_good_sign",m=`When volatility is subdued, uncertainty and risk aversion among investors tend to decline. This often leads to increased confidence, more capital flowing into equities, and a greater willingness to take on risk—all of which support higher asset prices.
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3In these calm market environments, companies typically find it easier to plan ahead and invest in growth initiatives, leading to stronger earnings and better performance. Empirical research also links low-volatility periods with favorable macroeconomic conditions, which can further underpin higher equity returns. Conversely, high volatility tends to reflect fear, uncertainty, or market stress. These conditions often suppress returns, or worse, lead to losses.
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5Below is a breakdown of 80 quarters of S&P 500 and Nasdaq-100 returns, categorized by realized volatility and corresponding average performance. The results reinforce the idea that calmer markets have historically rewarded disciplined investors with greater stability and potential upside.
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8  <img src="${t}" alt="image" style="width: 75%; display: block; margin: 0 auto;" />
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11  *Figure: 1, Data Source: fmpcloud.io. Data as of: 2025-06-30. Performance quoted represents past performance, which is no guarantee of future results. You cannot invest directly in an index.*
12</div>
13
14*Data from 1/1/2005 - 6/30/2025*
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16<div style="text-align: center;">
17  <img src="${h}" alt="image" style="width: 75%; display: block; margin: 0 auto;" />
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20  *Figure: 2, Data Source: Nasdaq. Data as of: 2025-06-30. Performance quoted represents past performance, which is no guarantee of future results. You cannot invest directly in an index.*
21</div>
22
23*Data from 1/1/2005 - 6/30/2025*
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