We describe our core view as pro-growth and pro-equity. We are equally pro-reality, with an environment of exceptionally low volatility masking a rising set of potential vulnerabilities.
Equity market volatility has increased sharply, with the S&P 500 index declining 4.1% on Monday, February 5. The VIX Index, a measure of implied equity market volatility, increased by 116%, the largest one-day percentage change in its history.
How can investors weather the heights in asset valuations and the potential risks in 2018?