An Interesting Divergence
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Even though the stock market makes new lifetime highs every single day………..
…….volatility’s demise seems to have stopped. We got to an 11-handle on the VIX, yes, but it seems volatility has had its fill of being pounded to death and, for reasons I can’t quite fathom, is pushing back.
We can see this by way of a layered chart. For a while, volatility and equities (inverted on this chart for easier comparison) were in lockstep.
Recently, however, volatility seems to be ticking higher, as if it’s anticipating a change.
Any thoughts or insights on this phenomenon?
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