The Waiting Game

It seems markets are encountering one of the biggest waves of volatility since 2011. Investors trading the VIX volatility index are surely the current winners as uncertainty and weak fundamentals continue to spark sell-offs into 2016 in favour of safe-haven assets. The ECB's recent press conference confirmed doubts that the Eurozone's fundamentals remained weak and that further stimulus measures are to be expected in the coming year. There was no doubt investors expected such an announcement as the Euro failed to lose much ground vs the Dollar as per previous announcements undertaken in 2015. Mario Draghi has since been busy convincing investors of the viability of the stimulus program for a Eurozone recovery. So far, it seems to have fallen on deaf ears as confidence in global markets has continued to weaken. In fact, yesterday marked the first outflow of funds from European equity Exchange Traded Funds (ETFs) since 2014, confirming that investors this time around are doubting the policy measures of the ECB in rejuvenating growth, which is enticing further volatility on global markets. The US showed contrasting signs yesterday as the Consumer Confidence Index data came in above...

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