US Equity Volatility Is Near 90-Year Lows

financialsense.com / ValueWalk / 05/04/2017

In a world where US political risk appears to be rising and nuclear threats with North Korea come amid persistent tensions in the Middle East and with Russia, worldwide market volatility appears to have blinders on. A Bank of America Merrill Lynch report out Wednesday, noting a “fearless VIX” dropping to 90-year lows, stands with mouth agape as it explains the market action. While low volatility could persist throughout the summer, the falling asleep of market volatility is not a “new normal,” the report predicted as Global volatility spreads home.

Global Volatility – CBOE VIX Index Reaches “Historic Floor”

The CBOE VIX index, a measure of option trading activity used as a proxy to gauge market uncertainty or fear, traded below the 10 level on Monday.

This “historic floor” has only been hit nine times since 1990, the BofA Global Equity Derivatives research team noted. The report, titled “Global Equity Volatility Insights – US equity vol near 90yr lows; what’s driving it and how long can it last?” pointed to the historical marker: only 3% of the time volatility had been lower since 1928.

Read more ... source: The Bitcoin Channel

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