Volatile markets are set to embark on even wilder roller-coaster rides through the end of the year and even into 2012, experts say.
Uncertainty will prompt traders to buy and sell with a fury on good and bad news, a scenario that only stokes the nerves of already jittery markets.
Plus national elections in China, Russia, France, and the United States could amp up markets things even more.
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"I expect volatility to remain high in 2012," says Mark Luschini, chief investment strategist at Janney Montgomery Scott, according to CNBC.
"The lack of a clear trend in global economic activity, due to lingering issues in Europe and our domestic situation, will sway market sentiment and bring with it sizeable swings in stock prices."
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Calmer skies, however, will return.
"Once we strike a chord of cooperation amongst our policymakers in Washington, the road to stability in our markets is relatively short," says Richard Keary, founder of Global ETF Advisors, CNBC adds.
Investment advisors, meanwhile, are telling clients to ride it out.
"Right now, asset classes that have historically moved independently of each other (such as domestic stocks, domestic bonds, and international securities) are moving up and down together. Uncertainty, intense investor emotions, and high volatility are resulting in unusual market behavior," David B. Armstrong, managing director of Monument Wealth Management in Alexandria, Va., writes in a U.S. News and World Report column.
"Many investors have been tempted to cut and run, moving their money into cash accounts, but I believe the current activity is an anomaly that will resolve itself in the long run. When it comes to building a solid investment strategy, a well-diversified portfolio is still the way to go."
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