Profit from the 'bull market in fear'

The market has become a much less predictable place than we've been used to for the past few years. But this mounting volatility also presents opportunities for those who don't mind taking some risks.

"Get used to volatility. Get used to short-termism," says John Waples in The Sunday Times. His point is that the market has become a much less predictable place than we've been used to for the past few years and it's likely to stay that way for the forseeable future. And you don't have to look far to see what he's talking about. Kate Brennan in Fortune magazine notes that during the last six months of 2007, the Dow Jones posted 100+ point swings 55 times against just 23 for the first half.

Many investors would understandably rather wait out this kind of turmoil in the safety of a cash deposit account. But this mounting volatility also presents opportunities for those who don't mind taking some risks. Do be warned, though: you can make or lose money pretty fast using these methods, so don't bet the roof over your head.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.