FYI: One of the most notable characteristics of the U.S. stock market in 2017 was how quiet it was, with major equities hitting a record number of records on little volatility. This environment has been very good for investors, and it may not end soon.
The “exceptionally low volatility” seen over 2017 “is reflective of the fundamentals driving volatility rather than investor complacency,” Morgan Stanley wrote in a note to clients. While some of the factors that contributed to the quiet market—including accommodative Federal Reserve policy and secular stagnation—are ending, in the point of view of the investment bank, traders shouldn’t necessarily expect 2018 to be altogether too different from this past year.
Regards,
Ted
https://www.marketwatch.com/story/stock-market-volatility-isnt-going-to-come-roaring-back-morgan-stanley-2017-12-18/print
