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A volatile calm: The paradox of 2016 financial markets

A landscape that will probably persist in 2017

Reuters  |  London 

Traditional measures of volatility at historic lows and Wall Street stocks at new record highs went hand-in-hand in 2016 with traders fretting about bouts of wild stock-price swings and currency flash-crashes. The past year has been nothing if not paradoxical for financial markets — a landscape that will probably persist in 2017. The proliferation of automated trading and passive investing, extreme levels of speculative positioning in an increasingly regulated broking world suggest investors should brace for periodic turbulence even if markets are mostly calm. While ...

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First Published: Thu, December 22 2016. 03:56 IST