Significantly Higher Volatility Ahead
In recent months, financial markets have traded within relatively narrow ranges. The S&P 500 has fluctuated between approximately 6,800 and 7,000, the yield on 10-year U.S. Treasuries between roughly 4% and 4.3%, and the EUR/USD exchange rate between 1.17 and 1.20.
As we have noted on several occasions, this reflects a broad range of uncertainties that are preventing markets from taking a clear directional stance. Key concerns include...
