Tuesday 10, September 2013 by Russ Koesterich

Market volatility rises amid uncertainty

Over the past few weeks, we have seen market volatility rise noticeably, and last week both stock market and bond market volatility advanced to two-month highs. Although most of the recent economic data has been pointing to marginal improvements in the global economy, it seems investors are focused more on the risks and on uncertainty. In our view, there are currently three main drivers to volatility: uncertainty surrounding the path of economic growth, uncertainty over Federal Reserve policy and concern over growing geopolitical instability in the Middle East.