Kolanovic Warns Of Volatility Ahead

Just day’s after Baupost’s Jim Mooney wrote a letter warning of dangerous volatility patterns and risks of systematic strategies such as risk parity exacerbating a S&P 500 sell off, JPMorgan’s derivatives strategist Marko Kolanovic is piling on the issue, one he has long addressed. In a research note out Thursday afternoon, Kolanovic also notes troubling market patterns that point to the tranquil market environment being disrupted by the withdrawal of central bank quantitative dopamine. It all points to volatility concerns amid a market environment beset by historically low volatility. But the news is not all bad, he observes.

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S&P 500 Sell Off ahead? Kolanovic expresses concern as the Federal Reserve...

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