The Strange Death of Volatility

Volatility is dying in stocks, bonds and currencies. Central banks are killing the information content of market prices.
Money is Flatlining. Photographer: Scott Eells/Bloomberg

Ask any trader to list the market conditions most conducive to making money, and you'll hear the word volatility. Swinging prices create profit (as well as loss) opportunities; when prices flat line, the trading seas are becalmed. Volatility, though, is disappearing, in stocks, bonds and currencies.

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