Investors in for volatility shock

Tim Wallace
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INVESTORS are too confident that a prolonged period of market stab­ili­ty will continue, and could be hit hard when volatility returns, the Financial Stability Board warned yesterday.

“Volatility in asset prices has be­come compressed and asset val­uat­ions stretched across a grow­ing number of markets, increasing the risk of a sharp reversal,” accord­ing to the group of international regulators, headed by Bank of England governor Mark Carney.