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How can you inspire millennials to vote when our primary political vessel represents not volatility and upheaval, but boring stability?
Such markets "can be more predictable," he said, "and you have leases in place, so there's not volatility of cash flow".
Its not volatility that should concern you.
One might be tempted to say that the market couldn't suffer a decline from here just because we're already somewhat oversold on a number of indicators (not volatility, but breadth and perhaps put-call ratios).
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The same studies show that allocations above 30percentt - 40percentt do not reduce volatility by any significant amount and may even increase volatility during certain time periods.
The Black-Scholes model does not predict volatility, but option prices do imply a market outlook on volatility.
And, to Mr. Etzioni's surprise, it was not random volatility.
In binomial economies leverage is determined by down risk and not by volatility.
The V is not for volatility but for the current economic outlook.
The real puzzle is not why volatility has suddenly increased, but why it had been so low in the past year or so.
And it's not just volatility that is a problem.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com