Albert Edwards’ Big Unanswered Question About Volatility

For a permabear like Societe Generale strategist Albert Edwards, this week’s correction is further proof that markets aren’t as healthy as they seem but not a reason to relent. Instead of having some relief that equities’ full valuation have come down a bit, he’s wondering why volatility always seems to accompany bear markets instead of bull markets, and what might happen if bond market volatility picks up.

Albert Edwards worries about rising bond volatility

“What I have never really been able to understand is why vol only rises when the market declines,” Albert...