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However, it said it expected volatility to return.
A closely watched measure of expected volatility in stocks jumped 13percenttoto its highest level since March.
The expected volatility of the Japanese stockmarket increased by 224% in the days following the quake, according to the VXJ index (see chart 1), before falling back somewhat.
Joshua Raymond, a director at financial trading firm XTB, said he expected volatility in the value of the pound, with both sides of the Brexit argument using the media to sway public opinion to their side of the argument.
Measures of the pound's expected volatility, calculated from the price of derivatives, have been creeping up all year, and now exceed the highs reached on the eve of the Scottish independence referendum last September (see chart).
A survey of fund managers by Merrill Lynch, an investment bank, found 82% expected volatility to rise this year.However, as the Bible says, "by their fruits ye shall know them".
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People who thought this was a steady growth business need to revise expectations and expect volatility".
Q. Do you expect more market volatility? A. I don't know if conditions will be as volatile as they were, but I expect volatility to stay high.
"We would expect volatility till after the election and the fiscal cliff is sorted out," he said.
Analysts expect volatility to persist as investors assess the threat posed by Europe's deficits to the global recovery.
Despite the fund managers' optimism, Mr. Altfest cautioned that investors should expect volatility in natural resources funds.
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