Stock Market “Fragility” Indicator Highest Since Lehman, BofAML Warns

Jon Alternative Media, Blogosphere, Corruption, Economy, Market Commentary

In 2016 BofAML’s global equity derivatives desk expects volatility to maintain its gradual upward trend, however, to continue to be punctuated with violent but short-lived shocks owing to poor liquidity, extreme positioning and a market still heavily manipulated by (and dependent on) the central bank put. Despite below-normal levels of volatility across asset classes, we are in uncharted waters in terms of a lack of stability:
Markets are setting records in terms of jumping from calm to stressed & back, CB liquidity is tightening, making markets more accident prone, and Our indicator of cross-asset market fragility is near its highs

This post was published at Zero Hedge on 12/22/2015.