201. A volatile situation.
- Author
-
MCMASTER, IAN
- Subjects
MARKET volatility ,VOLATILITY (Securities) ,FINANCIAL risk ,INTERNATIONAL trade disputes ,CHINA-United States relations ,FINANCIAL crises - Abstract
The article describes the use of the term volatility in the stock, bond and currency markets. It informs that Volatility Index (VIX) created by the Chicago Board Options Exchange (Cboe) measures the market’s expectation of volatility and mentions rise in VIX due to trade dispute between the U.S. and China. It states that long periods of low volatility encourage investors to take excessive risks that can cause the next financial crisis.
- Published
- 2019