Volatility is back as worry replaces complacency

AFTER several months of no volatility in the major indices, it looks like markets are making up for lost time. Over on Wall Street for example, the Dow Jones Industrial Average this month has undergone nine sessions in which it rose or fell more than 200 points.

Conventional wisdom is that if markets are suddenly aware that if central bank monetary stimulus is ending but growth has not gained the required traction, then it's not a sweet spot that the economy is in but one that's decidedly sour. If so, then the substitution of worry for complacency has brought volatility back to the table.

The big question facing investors is of course, whether global growth really is stalling, or if Wall Street's rebound of the past week means it isn't.