One Bank’s Surprising Finding: “It’s Not Complacency But Paralysis”
by Tyler Durden
ZeroHedge.com
Jul 19, 2017
Complacent: Contented to a fault; self-satisfied – The American Heritage Dictionary
Three weeks after the volatility-obsessed Deutsche Bank derivatives expert Aleksandar Kocic went so far as to not only qualify what he said was pervasive market complacency, but to also quantify it, and observe the exact moment when the market stopped caring and reacting to macro developments, some time in 2012…
… Canaccord Genuity’s Brian Reynolds is out with a new report that takes conventional wisdom about prevailing market sentiment and flips it on its head.
In “does low volatility mean that investors are complacent” the Canaccord analyst writes that it has become common wisdom that the current low level of volatility as measured by the VIX is an indication investors are “complacent,” and that the complacency is a potential negative for financial markets. Making his case known up frong, Reynolds promptly notes that he “completely disagrees with this notion.”
The Rest…HERE
