March 16, 2020/Coronation Report

The VIX Index, a US index of volatility, stands at its highest level since the global financial crash of 2008.

Volatility is not the same thing as risk, but volatility can cause risk if global investors head towards safe assets (e.g. US bonds) and do not wish to refinance comparatively risky assets in emerging markets. Meanwhile oil prices fell sharply last week, with a familiar story of a country taking on the US shale industry. This looks like a problem.

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