Periods of high volatility in the stock market can make for some stressful days as an investor. This is particularly true if I hold high-growth stocks or penny shares. Both are known to have sharp share price movements, both higher and lower. There’s nothing wrong with owning those type of shares, but I’m looking at adding a couple of FTSE 100 shares to my balanced portfolio to reduce the swings its value.
There are different ways that someone could define low volatility. I’ve taken the step to look at the difference between the highest price and the lowest price of a stock over the past year. From the variety of FTSE 100 stocks I calculated, the average high-to-low was around 40%.
A veteran of the market
Coming in below this mark at 23% is Bunzl (LSE:BNZL). The distribution and outsourcing business might have enjoyed a small share price range over the year, but it’s still up 15% over this period. This…
