Stocks in U.S. Risk Rough Road as Options Market Flashes Warning
- Traders bracing for higher volatility over next few months
- Valuations, monetary policy, debt ceiling seen as risks
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U.S. stocks hold the bragging rights over Europe when it comes to returns this year. Traders, however, are bracing for the rest of 2021 to be rockier in America.
That’s the signal from the options market, where more volatility is seen this fall in the U.S. than in Europe. Both regions face near-term political and monetary-policy uncertainty, but stretched valuations in America compared with Europe may account for the discrepancy.