Volatility | September 8, 2017

Category: Quantitative Insights

Volatility among many asset classes is starting to approach long term average levels. Barring any significant jump in risk, market volatility doesn’t yet signal a possibility for a major decline. As we have mentioned in other comments, it is prudent to take a more defensive position but this is likely just part of seasonal weakness.

Market volatility is an indicator of financial stress. Low or declining volatility environments may indicate favorable periods for equity investments, whereas rising volatility periods may favor sovereign debt and developed market currency exposure.

See the data