by Wolf Richter
Dreading “volatility” only on the way down.
“It’s too quiet out there,” BlackRock Global Chief Investment Strategist Richard Turnill wrote in his market commentary. “Low volatility and inflation expectations look unsustainable.”
Volatility isn’t low because things are great. It’s low because the Fed and other central banks have “played a role in suppressing” it with their QE programs, he said. And between 2012 and 2014, they “dulled market volatility to unprecedented low levels.” But that ended in 2015, as the Fed, after having ended QE, began to flip-flop about raising rates.