volatility imageThis recent article from the Upshot over at the NY Times attempts to explain why stock markets across the world have been experiencing so much volatility. Surely some of you have noticed and have even heard reports about how the “fear index” is unusually high right now, how the “VIX has jumped”, how “China is slowing”, how “Commodities are plummeting”, how the “Fed might hold on raising rates”, and so on. Basically, if you pay attention to financial news, it’s clear that something’s amiss and volatility is back. Well, to understand the why, we should first review the what. Continue reading