Expect periodic spikes in volatility

ON THE US

Josh Chisari of UBS explains how global events will continue to put pressure on markets in Q2.

Economic growth accelerated in Q1, which fueled a strong appreciation in the S&P 500 through mid-February but issues in the Middle East and Japan caused a spike in volatility and the market fell under pressure during the second half of the quarter. The political instability in the Middle East is a risk to the global economic recovery, as oil prices continue to rise higher on fears of supply disruption. The price of oil could ultimately reduce consumer demand and undermine corporate capital expenditures. Additionally, the tragic events in Japan combined with unresolved troubles with a ...