Why are volatility spikes significant?
In our last post we highlighted a volatility spike in the Value / Growth ratio as a potential sign that the multi-year under-performance of Value might be coming to an end.
More specifically, we looked at the 10-day volatility of the MSCI Asia-Pacific ex-Japan Value index divided by MSCI Asia-Pacific ex-Japan Growth index, which in November spiked to 30 for the first time in twenty years.
The last time this happened marked the start of a long period of Value outperformance.
Volatility spikes are often associated with market turning points. Why? ... more
A turning point?
We may finally have seen a turning point in the under-performance of Value.
The volatility of the Value / Growth ratio in Asia-Pacific surged to 30% on 6 November. The last time we saw a similar level was just over twenty years ago, on 10 April 2000:
This is significant because ... more