| By Filipe R Costa With volatility at its lowest in two years during August, it may be the right time for investors to make a play on a volatility spike, either by entering the options market or by playing with the VIX index. After a scary 24 June, asset prices entered a long period of tranquility, during which equity prices marched higher, central bankers took a vacation, and volatility declined. Investors were able to enjoy a quiet summer without having to fret over their investments. But September has ushered in a period of unrest. The upside potential of the equity market has been challenged once again while investors digest economic data, update interest rate expectations, and come to terms with the end of summer. The mood is changing. At times, this year has been really rough in terms of volatility. Take its beginning, for example. The commodity sell-off that marked the end of 2015, just after the first rate hike in the US, was extended into the beginning of 2016, pushing volatility to its highest during January and February. By then, asset prices were under intense fire and the VIX index hit a level of 32.09. But with the FED under-delivering in terms of expected rate hikes, the market entered a quiet period and the VIX declined to levels near 12-13. The relative tranquility was only punctured by the Brexit vote, which brought a new set of problems into the market. The VIX was pushed higher again, to a level of 26, but quickly entered a new peaceful period that lasted until just a few days ago. Apart from the interest rate move and Brexit vote, the market has been relatively quiet. This reality may change as we approach the end of the year, when the FED is again pressed to hike its key rate and investors start recalculating how far this market has gone without supporting fundamental data. Not that the main equity indexes have been going gangbusters during the year, but both the US and the UK market have been rising in spite rather than because of real economic data… Click Here To Read The Full Story The Master Investor Market Report - The FTSE 100 closed the day at 6,684.99, an increase of 19.36 points.
- The FTSE 250 fell 6.40 points to finish at 17,654.64.
- The FTSE All Share climbed 8.16 points to finish at 3,651.57.
- The FTSE AIM All Share ended the day at 801.64, down by 0.01 points.
Galliford Try (GFRD) earned record profits before tax during the year ended 30th June, an 18% improvement over the prior period fuelled by high completions and significantly better margins. The full year dividend was raised by 21% to 82p as a result. Management said they are paying close attention to market conditions after the Brexit vote, but added that current trends are encouraging. Shares in Galliford Try rose 7.4% to 1,215p. | 
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