From Jon Markman: There is a new theory making the rounds on Wall Street. It holds that historically low volatility is the product of smarter investors who are armed with more information.
It is a cool theory. One that’s backed by plenty of learned people. It is certainly topical, and convenient.
Unfortunately, this theory is also probably untrue. Even worse, it could be dangerous.
Investors should be aware. They should be taking precautions.