Importantly, while that was taking place the last time
we saw volatility spike like that, you know, we were facing recession — global recession.
«As soon as we broke the 50 - day moving average...
we saw volatility spike,» said Jeff Kilburg, CEO of KKM Financial.
This year, we've
seen volatility spiking in stocks.
Not exact matches
The caveat would be that we have never
seen a
spike above 35 before from near record low levels of
volatility.
«Even if
volatility falls notably from here which history says is likely after such a
spike, we find it difficult to imagine the market being prepared to drive it down to the record low levels of [the second half of] 2017 anytime soon given the shock
seen this week,» they say.
We
see the low -
volatility regime sticking for longer, but
see potential for episodic
spikes amid rising risks.
On 15 October, stock market
volatility spiked to levels not
seen in more than two years.
Bottom Line: While I can
see rates falling later in the year, it would likely be preceded by a
spike in
volatility and higher interest rates.
Related: OPEC Circus
Sees Oil
Volatility Spike
Fortunately, the
spike in
volatility that we
saw in February has subsided significantly.
Here we can
see the VXX, short term
volatility graph, which
spiked during the sell, off in early February but has since stabilized.
«Today was pretty unprecedented in terms of the
volatility spikes we
saw... when the U.S. market sold off in a way that we've never
seen it sell off before,» Mr. Leong said.
Haven't really
seen much carnage there, but would love to
see volatility really
spike.
The interesting thing about this week's market condition is that I have not
seeing any real panic selling in stocks, and I'm not
seeing the
volatility index
spike in value yet.