Low price variance that characterized the equity markets has recently given way to a burst of volatility. Over the last five trading days through yesterday (10/13), the S&P 500 experienced swings of 1% or more, with four of those days ending to the downside. Concerns about global growth were cited as the dominant reason for the whipsaw trading activity that saw the Dow Jones have its best and worst day of the year last week. Currently, risk aversion is back in style in a significant way. This is best exemplified by the ongoing strength of the U.S. dollar which is at a two-year high versus the Euro on a currency exchange basis.
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