The Volatility S&P 500 Index (VIX) dropped to the lowest level in history to trade at just under $9.50 this month. Low volatility is viewed as a positive sign when it comes to long-term investing as this simply implies low investment risk.

As such, investors find it more secure to take long-term positions thereby increasing activity in the market. Simply put, this is the time that also attracts new investors to the market whereas, there are few departures.

However, during such a period, stocks tend to be overpriced because more investors assume that due to market stability, stock prices will continue to go up. In addition, low volatility also increases the uptake of credit in the lending market. This is because lending institutions also tend to have more confidence in the ability of their borrowers to settle their debts.

This results in more money in the market, which in turn continues to push stock prices up. The US stock market indexes are all at all-time highs, so where are the opportunities?

As such, when volatility is low investments are unlikely to genuinely undervalued stocks since the market is either fairly-priced or overpriced. This also aligns well with the analogy that high-risk investment opportunities result in high returns and vice versa.

So, where exactly do you find value when market volatility in developed countries is low? The answer is simple. Emerging markets provide a good option. However, investing in frontier markets is likely to provide the right balance to investments in low-risk assets.

Frontier markets are slightly behind emerging markets in terms of development, however, there are a few that stand out for investment. To identify these unique markets, investors can do so by analyzing a range of factors that drive growth and opportunity in an economy.

These include countries and regions with rising levels of urbanization, stable geopolitical environment, and high population growth rates. All these factors are good catalysts for investment opportunities in frontier markets but they must also be accompanied by good health statistics and limited obstacles to investment.