“It’s Scary Quiet”: The Past Month Has Seen The Least Volatility Since 1995

Tuesday, August 23, 2016
By Paul Martin

by Tyler Durden
Aug 23, 2016

Just yesterday we posted a letter written by Jeffrey Miller (here) where he eviscerated Central Banks for the lunacy of their policies which have created complete complacency in the markets. The problem, as we pointed out, is that the Fed has lost all credibility by repeatedly caving every time they hint at a rate increase and markets sell off the tiniest bit. This “Yellen Put” is what enables desperate pension funds to pursue extremely risky strategies like the decision by the Hawaii Employees’ Retirement System to allocate $1.6BN for a “put-writing” strategy (see “”Selling Puts” – Latest Pension Strategy Is Truly 2006 All Over Again”) or like the decisions we discuss frequently of pensions buying longer and longer dated bonds for no yield.

Right on cue, this morning the Wall Street Journal pointed out that “the past 30 days have been the least volatile of any 30-day period in more than two decades.” In fact, they point out that only 5 days during the most recent stretch has the S&P 500 moved by more than 0.5%, which is the lowest since 1995.

The Rest…HERE

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