Hedge for More Turbulence in ‘Uncertain World,’ UBS Says: Chart

Investors' Memories Are Short, Here's Why

Traders are betting the current market calm won’t last. While the CBOE Volatility Index hovers around a two-year low, futures wagering on U.S. stock swings in the next three months are near a four-year high relative to the gauge. “This is a more uncertain world, and we think volatility will revert once again,” Julian Emanuel, executive director of U.S. equity and derivatives strategy at UBS Securities LLC in New York, said in an interview on Bloomberg Television Wednesday. “The uncertainties are Fed policy, the uncertainties are politics here and in Europe. Hedge yourself into these events coming up.”

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