Is recent volatility a concern?
After an unusually long period of complacency, volatility has returned to markets. Concerns over Fed tapering and rising bond yields, the U.S. debt ceiling, inflation pressures, slowing economic and earnings growth projections, and Chinese property markets have all played a role in driving recent swings in sentiment and provided the catalyst for the S&P 500’s first 5% pullback in nearly a year, the 13th-longest streak on record.