Italian Stocks: as Volatile as Emerging Markets

Since 2011, Italian equities’ volatility has averaged 20%. The root causes are the sovereign debt crisis, the economic recession, and the allocation to financials and energy stocks

Sara Silano 19 September, 2016 | 3:18PM
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You need a cool head and steady nerves to invest in Italian stocks: They are as volatile as Emerging European indexes. According to Morningstar data, over the past five years, the Morningstar Italy Index’s standard deviation was close to 20%. Only Greece, Turkey, Russia, Hungary, and Poland did worse than Italy.

Over the same period, the volatility of the eurozone index was 14.31%, with France and Nordic countries among the closest to the mean. To find less volatile markets, you need to look outside the eurozone, in Switzerland or in the United Kingdom.

From a global perspective, the five-year standard deviation of the Italian benchmark is similar to that of China and Peru and slightly higher than South Africa and Thailand.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Sara Silano

Sara Silano  is Editorial Manager for Morningstar Italy