Keeping a close eye on the volatility of stocks, currencies, bonds and commodities is an integral part of our investing process. In this recent edition of The Macro Show, Hedgeye CEO Keith McCullough answers a subscriber’s question on volatility and the price of gold.
“Volatility, or the standard deviation of outcomes of where the price can be is a function of where the price just went. So, when it goes up a lot or down a lot, quite frequently you’re going to see volatility start to widen,” McCullough explains.
“That’s just math. And what that really tells you is that it’s a good time to sell some.”
Watch the full clip above for more.