People can’t stop talking about uncertainty in the market especially given the unresolved fiscal cliff issues.
But for all that bluster, stock market volatility as measured by the VIX remains relatively subdued.
Below is a chart from BlackRock that tracks the VIX against its own “political uncertainty index.”
Usually the two move mostly in tandem.
“The sources of uncertainty are not just homemade; they come from abroad as well, from Europe and China,” writes BlackRock. “Strangely, volatility has been very low while this policy uncertainty has been very high.”
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