Volatility | April 13, 2017

Category: Quantitative Insights

Our Observations: Short-term volatility (as measured by 22 days) increased in most assets, but certain stocks assets and metals are approaching their longer-term averages. We think rising volatility along with declining short-term momentum is a relatively strong signal of a bumpy road ahead, especially for risky assets such as stocks and commodities.

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.

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