26 February 2016
Will low volatility perdure in 2016?
"The turbulence around the so-called “Black Monday” (August, 24th) shouldn’t make us forget that equity volatility overall remained relatively subdued in 2015. Though volatility modestly rose in the second half of 2015, a long term perspective shows that it remained far from 2008 or 2011’s record levels, and also below its long term average:
Central bank “puts” have still been at work in 2015. By forcing investors to invest in risky assets, they have maintained equity volatility at low levels. Even the air pocket in August was short-lived and not as impressive compared to other historical events."