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The Australian:
Everything's looking rosy, but it pays to watch for an X-factor

8 July 2014

Low volatility doesn't cause markets to turn down; but it leaves them vulnerable to unexpected bad news. Nicholas Bloom, professor of finance at Stanford University puts it well: ''The fact that volatility is well below its long-run average right now suggests that there is not much downside risk and a lot of upside risk for volatility''.

This article was published online by The Australian on July 8, 2014
Link to article here

Related links
Nicholas Bloom webpage
Productivity and Innovation Programme webpage

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