Trying to keep calm and carry on
We've seen exceptional volatility this week. The Swiss franc fell over 5% vs. the euro this week, the biggest move since the launch of the single currency. Despite this, the Swissie is still up vs. the euro on the week. In equities, we've seen 500+ moves in the Dow for the past few days, something not seen in the history of the index. It's not only about news, it's about diminished liquidity during the summer months which is causing price swings way beyond the norm. Four European countries have introduced bans on equity short-selling. Overall, in this environment it pays not to over analyse the extent of the price moves we are seeing. |
