The market internals have painted a different picture than the overarching volatility measure.
At an index level, markets have been calm with only two days in the first quarter where the S&P 500 moved up or down by more than 1% as opposed to the quarter average of 18 days, Stubbs added.
On a broader view, JP Morgan AM’s chief economist Stephanie Flanders said data suggested global growth was becoming “more synchronised” but questions remained over how it would feed through to investor returns.
She added the global economy was also more complicated as low levels of surface volatility covered major sectoral shifts and increased dispersion in returns.
