In these volatile times, many investors are receptive to volatility reduction products.

However, research conducted by ICON Advisers President Craig Callahan and C. Thomas Howard, professor of finance at the University of Denver and co-founder of ICON affiliate AthenaInvest, has shown that while higher- than-average weekly market volatility occurs concurrently with lower-than- average or negative returns, this phase is frequently soon followed by lower volatility and higher-than-average returns. Stock market conditions change through time, and recent behavior often does not continue into the future. That said, it is worth looking at the patterns when deciding how to approach markets immediately following a prolonged period of volatility.

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