For the past year, the stock market has been the least volatile since 1965, and investors seem complacent.
Are you worried about a volatility shock?
Chief options strategist, Oppenheimer
â€œFrom this historically highâ€¦level, Iâ€™m not worried. If my portfolio goes down 5% to 10%, it isnâ€™t a tragedy because I have substantial unrealized gains, and I suspect that is true of many investors. Bottom line: Iâ€™m a long-term investor.â€
Equity risk manager, Timber Hill/Interactive Brokers
â€œThe biggest thing we have to fear is the lack of fear itself. Something investors arenâ€™t even contemplating will ultimately make volatility great again.â€
Derivatives strategist, MKM Partners
â€œAlmost always. This is the most volatile part of the trading year, and a shock is possible, but it is tough to predict and even tougher to get investors to react, given the recent history of an extraordinarily nonvolatile stock market.â€
Senior market strategist, LPL Financial
â€œWe are worried about a volatility shock, mainly because it will be a harsh reminder to many.â€¦Ten months without so much as a 3% correction in the S&P 500 has lulled many into a false sense of security, which will make even a normal bit of volatility feel worse because it has been so long since the last correction.â€
â€”Steven M. Sears
U.S. markets continued their climb, making several new highs. Crude oil rallied above $50 a barrel, ending the week at $49.89, up 5.08%. On the week, the Dow Jones Industrial Average and the Standard & Poorâ€™s 500 index rose to records; the Dow was up 2.16%, to 22,268.34, the S&P, 1.58%, to 2500.23.
At It Again
North Korea threatened to â€œsinkâ€ Japan, and fired another missile over that country days after Pyongyang said â€œLetâ€™s reduce the U.S. mainland to ashes and darkness.â€ The U.S. said it would impose more sanctions on China if it doesnâ€™t do more to stop banks from dealing with North Korea. A Japanese official said North Korea would become more isolated.
President Donald Trump met with Democratic leaders, and said he and they were â€œfairly closeâ€ to a pact to give legal status to undocumented individuals brought to the U.S. as children. He said funding for a border wall wouldnâ€™t be part of the deal. In another development, a Supreme Court justice temporarily restored Trumpâ€™s ban on thousands of refugees seeking entry into the U.S.
Hurricane Irma ripped through the Caribbean, but spared Florida the worst of its destruction. Six people died in a nursing home in the state when a generator failed, bringing the death toll from the storm to 82. Damage estimates range from $25 billion to $55 billion.
X Marks the Spot
Apple unveiled a new flagship phone, the iPhone X, that has a larger display and facial-recognition features. It will sell for nearly $1,000. The company also introduced two other upgraded phones.
Trump blocked a Chinese-backed investor from buying Lattice Semiconductor, saying he did so to preserve the integrity of the U.S. semiconductor industry. A Chinese spokesman said countries shouldnâ€™t use security reviews to push protectionism.
Terror in London
A homemade bomb exploded on a London subway train, injuring at least 29, though none seriously. The U.K. was treating it as terrorism.
Trumpâ€™s former national security adviser, Michael Flynn, while still on the job, reportedly promoted a controversial private-sector nuclear-power plant in the Middle East that had once involved Russian companies. Flynnâ€™s lawyer declined to comment on the Russia investigation.
Nordstrom shares soared after CNBC reported that private-equity firm Leonard Green & Partners may help fund a buyout of the department-store chain. Spokesmen for Leonard Green and the Nordstrom family declined to comment.
Health Care Revived
Bernie Sanders promoted a Medicare-like government insurance system for all Americans, while Republicans outlined a bill to let states use federal Affordable Care Act funds however they wish.