Gavekal Capital: Is Equity Volatility Set to Rise?

Thursday, May 14, 2015

Is Equity Volatility Set to Rise?

Even casual observers of the forex markets will have noticed that it has been a bit of a wild ride over the last several months.  And, while currency volatility has spiked, equities have remained relatively placid.  If this chart showing the historic relationship between the VIX and forex volatility is any indication, the current calm environment could be upended fairly abruptly: