With Limp Stock Performance Expected In 2016, Embrace Don't Fear Volatility: BAML

Get ready for what could be a 2016 full of “violent dislocations in asset prices,” a Bank of America derivatives research report predicts. For many long only investors such volatility, predicted by the bank to be the most acute since 2008, can cause pain. But for investors who position themselves properly, playing interesting market correlations that are currently not properly reflecting risk pricing vis-a-via options markets, the result could be financial gain.

Market keyword for 2016 might be “fragile” as volatility is the only predictable

Ultra-low interest rates are an opiate not a tonic, Jim Grant recently noted in a Financial Times piece. Bank of America’s derivatives analysis...