Volatility may be back, but with a Whimper More than a Vengeance

(Reuters) “Volatility is back,” the Bank for International Settlements reckons, and speculators are betting big on its return. But after a brief and dramatic appearance earlier this year, volatility in fact seems to have slunk back into the shadows. Hedge funds and speculators have had a poor start to the year, crushed by the spike in volatility in the first week of February and failing to recover since. What’s also curious is the inability of stocks and other risk assets to fully regain their upward momentum despite the reduction in volatility.

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