There's a new force moving markets - investors are developing an immunity to geopolitical events

There's a new force moving markets - investors are developing an immunity to geopolitical events. Cash flow is more important than gas flow. Volatility appears to be back from the dead, with the VIX jumping 27% as July drew to a close. Markets remain calm by historical standards, but it's hard to believe the trigger of the month's greatest spike was US wages rising (which may contribute to a Fed decision to hike rates sooner rather than later), while upheaval in resource-rich nations across the Middle East and Eastern Europe have yet to cause a notable stir. Investor reaction to the MH17 crash was muted, with the VIX rising just 1.51 to 12.86 over the day news broke. Compare this to when Iraq invaded Kuwait in 1990, where the VIX spiked from a calm of around 11 to 36.4. Here's why Central Banks have altered the playing field (VIEW LINK)