This topic reminds me a passage I read

So, this topic actually reminds me a passage I read the othe day, i will summarize the basic idea, and leave you the links for you guys who are interested.

The passage firstly gives the status quo, that the stock market volatility in the US is at its lowest in over 20 months, despite concerns over a slowing economy, geopolitical risks and banking turmoil.

According to the head of asset allocation research at Goldman Sachs, the buoyancy of the US economy, which has seen strong employment and consumer spending, is a key factor in the low volatility.

Additionally, inflation is showing signs of cooling, and unexpected concerns over stability in the regional banking sector have led traders to expect rate cuts from the Federal Reserve later this year.

However, that man warns that the low volatility is unlikely to last all year, as economic growth is likely to slow and credit tightening due to US bank stress is expected to weigh on growth. Investors are increasingly concerned about political wrangling over raising the US debt limit, and there are signs that some investors are tilting their portfolios toward higher quality stocks, cash and bonds.

There are some factors contributing to the low volatility. the low volatility in the US stock market is due to buoyant economic data, including strong employment and consumer spending figures, which have helped to anchor volatility.

Inflation is showing signs of cooling, and unexpected concerns over stability in the regional banking sector have led traders to expect rate cuts from the Federal Reserve later this year. Additionally, investors are mindful of the cost of options hedging and are not yet concerned enough about growth. However, Mueller-Glissmann warns that the low volatility is unlikely to last all year, as economic growth is likely to slow and credit tightening due to US bank stress is expected to weigh on growth.

Investors are increasingly concerned about political wrangling over raising the US debt limit, and there are signs that some investors are tilting their portfolios toward higher quality stocks, cash and bonds. The VIX curve is upward sloping, which is a sign that investors expect volatility to increase in the future.