Volatility Set for Revival as Stimulus Peaks, Virus Flares
- Delta variant a reminder of ongoing battle against Covid-19
- Fundstrat warns history points to ‘brutal’ July for stocks
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The outbreak of a more contagious Covid-19 strain and the prospect of less supportive U.S. monetary policy are pointing to the risk of a choppier path ahead for the equity bull market.
Strategists are warning on volatility but still expect more gains for stocks over 2021, arguing vaccines will help economies reopen. That mix would mark a shift from the first half, when the Cboe Volatility Index, or VIX, fell to pre-pandemic lows as the S&P 500 jumped 14% on a tide of liquidity.