Share markets grow a thicker skin

Tuesday, 22 October 2013

A cracking chart today from Deutsche looking at diminishing market responses to systemic risks:

A few caveats. The is based on the VIX Index, which is an equities gauge based around investors perceptions of market volatility in the next 30 days. If we instead used the US Treasury yield, or CDS prices, the results would not be as reassuring. Thought provoking nonetheless.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.