We don’t know how bad the Coronavirus will be and how badly it will impact the global economy. Or what The Federal Reserve and other central banks will do to combat the anticipated slowdown. In other words, there is uncertainty spooking markets.
Total equity trading volume has been holding at very high levels, signaling emotion-driven moves. The 10-day moving average is at the highest since the growth-scare days in late 2011.
The three-month dollar LIBOR plunged to financial crisis levels.
The Dow opened up 500 points.
And the 10-year Treasury yield keeps on dropping.
Yes, volatility rears its ugly head.