Four potential causes of low volatility

With low volatility, some investors think this market environment is like a calm before the storm. This is a significant issue among investors to whom Bernstein speaks. What is causing these low Vix index levels? In a May 16 report quantitative strategy report, Bernstein’s Inigo Fraser-Jenkins and a team identify four potential issues, then make a global observation regarding an investing world put to sleep and weigh in on including a short volatility strategy in a portfolio.

Low VIX Index level is the hot topic of conversation

The benign volatility regime that has beset...