The round trip in stocks so far this month was perhaps best described by my friend Peter.
As measured by the VIX Index, we just witnessed the most extreme stock market swing on record.
To some degree, the decline in stocks at the start of the month was driven by the unwind of the yen carry trade.
Traders rushing back into those leveraged positions this week helped to drive the rebound.
However, history suggests these episodes are rarely so straightforward.
Moreover, the monetary cycle suggests this could be just the beginning of a prolonged period of rising volatility.
