Volatility | August 3, 2017

Category: Quantitative Insights

Overall, volatility stayed stable during the week with near-term and long-term volatility fairly close to each other. Consistent with a change in momentum, the volatility of commodities did decline and was slightly below long-term trends. We think this might be the beginning of some potential inflation.

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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