We still can’t say the exact moment where we will see some pain in the US equity market, but record-low volatility is a very, very, very bad sign for the short-term future of the US financial sector
Low-volatility in stock prices must be read in two ways:
1) “There is a very low perception of risk…”
2) “… but this means it’s unlikely to see volatility go down, so it will go up soon”
Zerohedge has 13 charts to analyze the record-low volatility, check them out:
It is just like being at the top of a rollercoaster, we’re slowly moving to the peak and then…well, be ready.