How Low Can Volatility Go?
With the S&P 500 generating six record highs over the last seven trading sessions — bringing the index’s record-high tally for the year to 31 — it shouldn’t come as a surprise that implied volatility is historically low. Receding expectations for market volatility have primarily been supported by easing inflation pressure, relatively less ambiguous monetary policy, impressive earnings, and a resilient U.S. economy.
