The Cash Indicator (CI) jumped higher based on recent market volatility, then quickly settled. Though a jump in volatility like this is discomforting, it is to be expected given how complacent the financial markets have been.
Periods of exceptionally low volatility tend to be followed by a spike in volatility, which is a normal reaction. We have seen similar situations over the years, most recently in the spring of 2023. With the backdrop of persistent economic growth, the equity market quickly recovered.
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