Market Ethos - May 15th, 2017

Beware Calm Surface Waters

 

The VIX, a popular measure for equity market volatility, dropped below 10 last week, a level rarely seen in its 27 year history. Volatility seems to be declining across other asset classes as well including bonds and currencies.  The same trend appears for Canadian equities as well, yet when we dig beneath the surface we are seeing volatility on the rise.