Thursday, July 12, 2012
The alarming scale of uncertainty in our times. Meaning what?
Rebecca Berg produced an article in the NYTimes [July 11, 2012], "Fear of Year-End Fiscal Stalemate May Be Having Effect Now" that provides a graph indicating the degree of uncertainty in the marketplace, based on the Chicago Board Options Exchange Volatility Index. It stunned me because it shows that there is far more uncertainty in the current market than existed immediately after 9/11/01. This market is more spooked by world conditions today than it was on the day of the attacks on the World Trade Center and the Pentagon.
What can this mean?