On August 5, when the S&P 500 dropped three per cent and the NASDAQ 3.4 per cent , a well-known measure of market volatility entered rare territory. Investors watching the market's "fear index" for signs of a recession need to be careful to "separate the noise from the signal," BMO economists say.Although the last four U.S. recessions were preceded by such activity, they believe “the U.S.
In their note, Porter and Kavcic looked at 10 major global or financial events over the last 30 years where the VIX was 38 or higher. In all of them, stock markets eventually fell more than 10 per cent . In four of them a U.S. recession took place., frequently an early predictor of recessions.
“And just as the economy has suffered more due to its greater interest rate sensitivity, an easier monetary policy could have a much bigger punch in helping steer growth away from the recession shoals.”The cricketer is returning for a new series of Field of Dreams, where he will address his horrific car crash and how it affected him.