A Decline In Market Risk Is Indicating Buy Buy Buy!Kevin Grewalupdated Jan 29, 2013TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity.The markets experienced a period of excessive turmoil and uncertainty this past year. However, despite facing the “Fiscal Cliff”, a continued European debt crisis, high US unemployment and a presidential election, the S&P 500 managed to produce a gain of 13.47%. So, what can we expect for the year ahead? Nobody knows for sure, but measurements of market risk are sending signals that this may be a good time to buy. The VIX, a measurement of implied future volatility, remains low at just 13.26. This has partly been influenced by the continued quantitative easing by the Fed which results in a great deal of liquidity in the markets and lower volatility. According to SmartStops.net’s market risk signals, the percent of S&P 500 components currently in the above normal risk state is down to 14%. This is historically very low and below the 100 day risk ratio average of 42% producing an SRBI of 0.33. An SRBI below 1 indicates risk has been on the decline. Visit the SmartStops Market Risk Barometer When we review 2012 and compare the SmartStops Risk Ratio for the S&P 500 to its performance, we clearly see the inverse relationship between risk and performance. The current low risk ratio of just 14% indicates it may be a good time to buy. Published previously in the SmartStops Members Year End Letter. As always, market and equity performance are influenced by many factors and their direction can change on a dime. We should all invest accordingly. To learn more about sidestepping periods of elevated risk and improving returns per day in the market, Visit www.smartstops.net.Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.