It is not because things are difficult that we do not dare, it is because we do not dare that they are difficult.
Monday, February 5, 2007
Volatility Compression and Convergence
The chart below (from the ECB's monthly bulletin) compares volatility for euro area, US and Japanese stocks. It's a converging world out there - as far as everyone's risk perceptions are concerned. Evidence of complacency becoming a global virus.