Global Markets

Global Markets Focus

22 May, 2017

Does low volatility really spell trouble for the US stock market?

There is a view that a big correction in the US stock market lies around the corner, because volatility is very low. This view has been influenced by the fact that volatility was very low before the financial crisis. Yet volatility was even lower in the early 1990s, before a multi-year bull market. Big corrections are not caused by low volatility, but by unanticipated, unwelcome developments.

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