Why All The Share Market Volatility?
There is quite a lot of talk about volatility coming back to share markets all of a sudden, and with the talk there’s also bit of conjecture about where the volatility originates from. Some say it’s because interest rates and bond yields are beginning to rise; others will point to the end of quantitative easing in the United States and elsewhere for the bumpier ride.
The return of inflation has been mentioned quite a lot recently as a reason why share markets are jumpy all of a sudden, by what has the return of inflation in the United States really got to do with share market volatility?
The link between share market volatility and inflation has to do with the recalibration investors are making to their expectation of share market performance, according to Dr Shane Oliver, AMP Capital’s Chief Economist.