What's The Big Idea?: The Return of Vanishing Volatility

The video discusses the current state of low volatility across various asset classes, including the S&P 500 and G7 currencies. It highlights concerns about market complacency and the potential for a sudden shift in volatility. The role of the Fed put in supporting risky assets and its impact on market dynamics is also explored, along with the implications of sustained low volatility on risk-taking behavior.

What is the current state of implied volatility in the S&P 500, according to the video?

• It is at its highest level in years.

• It is stable and unchanged.

• It is at its lowest level since October.

• It is fluctuating unpredictably.

What is the 'Fed put' as discussed in the video?

• A method to decrease market volatility.

• The notion that the Fed will support risky assets.

• A policy to reduce inflation.

• A strategy to increase interest rates.

How much of the S&P 500's appreciation is attributed to the Fed's actions?

• 42%

• 25%

• 10%

• 60%

What is a potential downside of the Fed's influence on market volatility?

• It results in higher interest rates.

• It causes a reduction in economic growth.

• It encourages the market to take on more risk.

• It leads to a decrease in market liquidity.

What could happen if there is an abrupt shift in the volatility regime?

• It might result in a smooth transition.

• It could lead to a market boom.

• It would have no significant impact.

• It could make the adjustment more painful.