Aaron Brown, Columnist

Dispelling a Myth About Stock Market Volatility

The biggest problem is the premise that the higher prices go, the more stable they are.

October 2, 2017 at 3:53 PM UTC

Aaron Brown is a former head of financial market research at AQR Capital Management. He is also an active crypto investor, and has venture capital investments and advisory ties with crypto firms. He is the author of the soon-to-be-released "Wrong Number."

Buckle in.
Photographer: David Ryder/Bloomberg

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During the recent spate of concern that stock market volatility was too low, I heard an old myth. For example, former Treasury Secretary Larry Summers explained that the phenomenon was a natural consequence of stock market gains:

The following rebuttal is not intended to pick on ivory tower economics or Summers, but rather to expose important misunderstandings that fool even some practicing investors.