Volatility Spurring Volumes (And Why That Might Not Be So Good For Performance)

Volatility Spurring Volumes (And Why That Might Not Be So Good For Performance) by Jennifer Thomson, Gavekal Capital Blog

As we saw earlier today, volatility has made a bit of a come back recently.  And, as we might expect, that increase has made its way into the volume statistics.  In fact, wherever we look around the world, 2015 looks to be on track for much higher volumes than we have seen in the last five years, rebounding from extreme lows of just one year ago.

MSCI The World Index

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Volatility

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MSCI North America

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MSCI Europe

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MSCI Pacific

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MSCI Emerging Markets

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MSCI EM Latin America

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MSCI EMEA

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MSCI EM Asia

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Why is the expansion of volumes important?  As we can see in the following charts, upticks in volumes (blue line, left axis, inverted) have coincided with significant market weakness (red line, right axis).

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