This article talks about the low volatility of the market over the course of the past 14 months. In 2012, the DOW Jones Average only experienced 29 trading days with 200+ point swings. This hasn't happened since 2006. Bob Doll is quoted saying that the high volatility of the market from 2007-2011 as being "abnormal" versus the more quiet levels we have seen. The real question is whether or not a higher level of volatility is predicted to ensue. Regardless, this is prime time for investors to take action on inexpensive hedge options. The Fed's zero-interest rate policy has allowed the world's healing economy to grow in a synchronized way, but it would naive to think that investors could rely on the Federal Reserve to protect them from losses in the future. Is a storm brewing as we continue upwards from the recession, or has the DOW stabilized for now?
http://www.usatoday.com/story/money/markets/2013/02/13/dow-nears-new-peak-amid-eerie-calm/1912509/
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