Authored by Lance Roberts via RealInvestmentAdvice.com,
Interesting….
For the last few months, there have been ongoing issues surrounding the “Russia Connection” and the underlying, and ongoing, investigations into the potential involvement/interference into the Presidential elections.
The market hasn’t cared. Until Wednesday.
As I noted last Friday:
Authored by MN Gordon via EconomicPrism.com,
“Injustice, swift, erect, and unconfin’d,Sweeps the wide earth, and tramples o’er mankind”
– Homer, The Iliad
When Mount Vesuvius Blew
Everything was just the way it was supposed to be in Pompeii on August 24, 79 A.D. The gods had bestowed wealth and abundance upon the inhabitants of this Roman trading town. Things were near perfect.
When Nassim Nicholas Taleb looks at President Donald Trump, he doesn’t see “a trainwreck.” The real trainwreck, according to the trader turned author, is “unfettered globalization." That's the real danger that members of "the resistance" should be worried about, Taleb says during an interview with Bloomberg.
"Historically there seems to be a new group of people each time that underappreciates the very significant risks of being short volatility and wants to learn this expensive lesson."
Co-inventor of the VIX index, Sandy Rattray is CIO of Man Group, CEO of Man AHL, and a member of the Man Executive Committee, and he has a clear message for investors - he believes it is extremely unlikely that today’s low realized volatility represents a 'new normal'.
The S&P 500 Index is due for many more swings like Wednesday’s in both directions, if the last 10 years history are any guide...
The volatility regime shifted dramatically since Trump was elected... are we due to go back to the old regime?
As Bloomberg notes, Wednesday was the fourth day this year in which the S&P 500 rose or fell more than 1 percent.