Why Is Volatility So Low?

With all that’s going on in the world, why the heck is volatility so low? And protection against a stock market meltdown so cheap? This Bloomberg story tries to provide some answers. One is that “selling vol” is just another way to generate yield in an ultra-low-rate world. Another is the belief that central banks will always and forever provide a market backstop, and that those backstops won’t fail. Personally, I think that’s bunk and that volatility might be one of the best bargains on the planet here. But only time will tell!