What's the Big Idea? Volatility Isn't Dead, It's Just Weird

Tracy Alloway discusses the current state of market volatility, emphasizing that while average volatility is low, markets are still prone to sudden spikes known as gap risks. These spikes can affect short-term investors more than long-term ones. The discussion includes insights from HSBC and other analysts on how gap risks can create feedback loops in markets, potentially leading to significant price jumps. The S&P 500 Futures contract's recent movement is highlighted as an example of these dynamics.

What is the main idea presented about market volatility in the text?

How does the text describe the behavior of volatility spikes?

What does HSBC suggest regarding gap risk for short-term investors?

What feedback loop is mentioned in relation to long-term investors and gap risk?

What impact do one-way flows have on market prices according to the text?