Stock Market Volatility And What Its Return Means For The Global Financial System

Investors despise price volatility. Currently, people are worried about the recent free-fall in oil prices and the plunge in bond yields to below 0 percent in the Eurozone and Japan. Last week, Swiss authorities allowed the Swiss Franc to float freely to the Euro. This surprise move caused the Franc to soar by 10 percent to the euro in one day. Conversely, the Swiss stock market declined by almost 10 percent, also in one day.