Low volatility is inciting flashbacks to the financial crisis – Business Insider

Now SocGen isn’t necessarily saying that a massive bear market is on the horizon. But they are throwing up a caution flag in an attempt to warn investors that the currently low-volatility environment is bound to come to a screeching halt, which could whipsaw multiple markets segments worldwide — especially stocks, which are particularly vulnerable.

Sponsored Links

We’re “now entering dangerous volatility regimes,” a group of Societe Generale strategists led by Alain Bokobza, the firm’s head of global asset allocation, wrote in a client note. “For most asset classes the current level of volatility is near the lower end of its long-term range. Volatility has a strong mean-reverting tendency.”

Low volatility is inciting flashbacks to the financial crisis – Business Insider