Source: Goldman Sachs via FT Alphaville
Despite what you might have heard recently, as it turns out, periods of low volatility are not particularly unusual.
Have a look at the chart nearby. It comes to us from Goldman Sachs via FT Alphaville, and it shows that spikes in volatility are quite unusual. Periods of low or falling vol is what seems to fill the time between volatility spikes. Its like plains of tall grass between the occasional redwood tree.
I have no idea what this means for the markets for the next week or month. However, it does suggest that an overemphasis on either the so-called fear index or complacency could be wildly overdone.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
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