Will volatility return to the markets in 2015?

World Finance asks Saxo Bank's Chief Economist, Steen Jakobsen, whether volatility is likely to return to the markets in 2015

December 23, 2014
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Transcript

World Finance: To what extent do you think volatility will return to the markets in 2015?
Steen Jakobsen: I don’t normally issue any guarantees, but I will guarantee you in 2015, volatility will increase. The geopolitical risk, I don’t need to go through the list of those, but if you look at the credit spreads they are trading in spread terms below the default rate, we have a zero interest rate policy around the world, even high-yielding economies like Australia are heading towards zero percent. We have China with no growth, we Europe with no growth, we have disinflation, we have a violation of every single inflation target in the world. If that doesn’t create volatility I will resign and go back to school and become a professor in agriculture.