Wednesday, September 27, 2006

Growth turning point means crunch time for investors

LONDON (Reuters) - Investors who have been profiting from the most robust global economic growth in decades are suddenly being forced to decide whether it is all about to come to an end and if so how severely.

One result: Volatility has been, well, volatile.

The VIX and VDAX indexes -- which are measures of expected equity price swings over a period of time -- have been on a yo-yo string throughout September, indicating unusual strong uncertainty among investors.


What is happening is that investors have decided that they are at a turning point. But they are not sure whether it is a mid-cycle slowdown or a more robust end of cycle altogether
Full article from Reuters

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