‘Volume, Volatility and Velocity’ Reinforce Need to Remain Well-Balanced

Jim Lowell, chief investment officer at Adviser Investments, spoke with CNBC’s “Squawk on the Street” team about major U.S. stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. indexes’ recent volatilityA measure of how large the changes in an asset’s price are. The more volatile an asset, the more likely that its price will experience sharp rises and steep drops over time. The more volatile an asset is, the riskier it is to invest in.. Jim emphasizes that the “volume, volatility and velocity” illustrate the importance of remaining well-balanced in both stocksA financial instrument giving the holder a proportion of the ownership and earnings of a company. and bondsA financial instrument representing an IOU from the borrower to the lender. Bond issuers promise to pay bond holders a given amount of interest for a pre-determined amount of time until the loan is repaid in full (otherwise known as the maturity date). Bonds can have a fixed or floating interest rate. Fixed-rate bonds pay out a pre-determined amount of interest each year, while floating-rate bonds can pay higher or lower interest each year depending on prevailing market interest rates.. However, facts—like interest rates, earnings and other economic data—continue to suggest a slow-growth-not-no-growth economy with “wealth-building opportunities.” Jim notes: “Add to some of your best long-term managers who are capable of stepping in on days when the market swoons to add to some of their best ideas at deeply discounted, fear-driven prices.”