Morning Notes — Volatility to Last

The CBOE Volatility Index (VIX) closed above it’s 50, 100 and 200-day moving averages every day last week.  Increased volatility commands a higher equity risk premia/lower acceptable multiples.   Volatility usually acts like a pendulum and it takes time to slow down.  Also note that equity volatility (VIX) and bond market volatility (MOVE Index) seem to be converging/resetting higher at the moment leading to significant performance dispersion in favor of low beta defensive sectors.