How to trade successfully in low market volatility

The risk of the stock market will remain subdued for the foreseeable future, experts from MKM Partners 

In view of the improving global macro volatility of the U.S. markets will likely remain low in 2014, this implies a situation in which only well -oriented investors will be able to take advantage of the slight adjustments in capital values ​​.
In January 2013 the expert from MKM Partners' Jim noted Stragar possible adjustment of the volatility of the markets and the relatively small variation of the euro against the dollar on an annual basis . Then he met with substantial evaluation skepticism , although largely his forecast proved successful.
From the mid- 1980s, when the date of the implied volatility indexes like VIX, seems clear cycle . Trend in the VIX shows an increase at the end of the economic expansion and a high level during the recession. Subsequently, however, in the years of recovery , as is expected to be a 2014 , there is a limit of divergent movements.
These modes of high and low volatility are of medium length by 5.5 years , which is exactly the time taken between July 2007 and January 2013
In 2013 there were six waves of moderate increase in volatility evenly distributed over the two-month intervals. Periods VIX growth averaged 19 points while and S & P 500 slipped 4 percent .
However, these changes did little to stop the strong growth of the benchmark by about 30 % for calendar year 2013 trend appeal to investors who are waiting with trepidation and upcoming next dvanadesetmesechie .
When volatility is subdued trend in the correlation between the stock is also low . Individual bonds are traded on the basis of more specific information about the company , rather than at the whim of broader market forces. This suggests an environment for constructive fundamentally oriented investors can be rewarded for his superb analysis.
Although U.S. equity reported inflow of about $ 20 billion in 2013 , the result is far from the average annual receipts of the market by $ 100 billion by 2007, according to figures from Investment Company Institute.
According to experts at MKM Partners' risk in the stock market will remain subdued for the foreseeable future. Therefore it is important for investors to successfully adjust their strategies for hedging .
Typical hedge instruments such as SPDR S & P 500 Trust and iShares Russell 2000 may be less effective than more localized structures of individual or sectoral level. While shares of nil premium may provide protection without the risk of capital loss. This will encourage investors to remain committed to the U.S. stock market , which can lead to hefty profits in 2014