Abigail with attitude: Volatility, trends and 'Europe-itis'

By:
Abigail Hofman
Published on:

So the long awaited and much anticipated correction to global markets finally came to pass. Although, if you had been away for an autumn mini-break, you would have missed all the action.

The S&P500 reached a high of 2014 on September 22, then plunged almost 10% in three weeks before regaining 100 points in less than a week. The wild ride was replicated in the US Treasury market, where yields (which every Wall Street economist had told us were on an upward trajectory) plummeted to 1.6% from 2.6% in a three-week period.

This resurgence of volatility could have been a good opportunity to make money if you had called the trend correctly. However, I’m not sure that many surfed the wave adroitly. These difficult weeks have highlighted...