Pablo Pardo (Washington) | Although the world’s prime economic power has grown for 114 consecutive months, Wall Street has spent the whole year in a saw teeth configuration. If stock market uncertainty was not enough, now fixed incomes have joined the chorus of anxiety. Since the summer, the yield curve has been flattening, in what appears to be the clearest sign of a recession in sight.
Nobody really knows why volatility has disappeared. In theory, there are more than enough reasons for the market to be nervous, and for investors to take advantage of this to obtain higher returns.