Volatility is what it is, but corrections are striking - ANZ

Analysts at ANZ explained that while the rise in volatility has been fairly dramatic this week, cumulative market moves to date are nothing that would show up particularly clearly on a long-term chart.

Key Quotes:

"But it’s the correlations that are most striking. In a typical bout of risk aversion, as equities fall, bonds gain (ie yields fall) as investors seek safe havens."

"This time round, it is the (entirely reasonable) fear that central banks may conclude super-low long interest rates are doing more harm than good that is behind the moves."

"Accordingly, it has been notable this week that the atypical positive correlation between falls in equities and falls in long-term bond prices (higher yields) that has left investors nowhere to hide hasn’t always been reciprocated with quite the same degree of enthusiasm on equity bounces."