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The Death of Stock Market Volatility

Stock-Markets

VolatilityJun 14, 2014 – 04:58 PM GMT

By: Jesse

The US equity markets ended the week on a dull note, barely able to bounce after a lower open to end the week on a correcting note.

The question will be if this is just a consolidation after a widely noted great leap upwards, or will we see a bit more action to the downside before this is over.

The FOMC will be meeting next week, and as is their wont, they may be pouring more of their oily liquidity over the troubled waters of the mispricings of risk.

As the Financial Times most recently notes in this headline, the Central Banks have used their mighty power to eradicate risk. All gain and no pain, a world without consequences (especially for the benevolent and enlightened rulers of finance).

As if.

This is the pinnacle of moral hazards, the triumph of the will to print money, and an impermanent plateau of illusory prosperity.

By Jesse

http://jessescrossroadscafe.blogspot.com

Welcome to Jesse’s Café Américain – These are personal observations about the economy and the markets. In plewis

roviding information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jesse

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