03 February 2014
2014 Equity Volatility Comment
Experts from Seeyond give their analysis on equity volatility for 2014
" History is packed with examples of monetary policies going wrong. Since 2008, central banks around the world have been putting together the most aggressive and innovative monetary policies in history. The question is whether we should consider this to be the new normal? We view the current low volatility environment is an artificial situation that should not be considered as fundamentally normal. The recent compression of equity volatility is a prime example of collateral damage caused by highly accommodative monetary policies. A number of key risks remain and the level of uncertainty will no doubt have unintended consequences that could in turn impact equity market volatility."