To continue, high valuations and low volatility require stable economic growth and predictable earnings.
I read a lot of commentary that essentially says “US equity market volatility has to rise from here… Because, well, it just should.” History says that is wrong. In my latest piece for Bloomberg Prophets, I outline three catalysts that will actually increase equity market volatility. Two have strong historical precedents; the third is a brand new threat to valuations. Click here to read more: