U.s. Dollar Bull Market Essay
For the year 2016, volatility could resemble 2015. The stock market enjoyed abnormally low volatility during the Federal Reserve’s zero interest rate period, but with rates starting to return to normal, market volatility is also likely to resume. The U.S. dollar finished 2015 near its highs and remains in a bull market. A pullback is possible, but overall a strong dollar will favor U.S. assets. Most importantly, China and other emerging markets are the greatest areas of concern. USMV will continue to benefit from avoiding these areas.
Beta is a popular way to measure certain forms of investment risk. According to Investopedia, beta measures the systemic risk of securities compared to overall markets. The capital asset pricing model, known as CAPM, calculates return on assets based on the securities overall beta and expected market returns.
The total stock market, which is often used as…