Whiskey Au Go Go - the year of volatile spirits

Whiskey Au Go Go - the year of volatile spirits. My opinion is that 2015 will be known as the year of volatile spirits. Markets of all types will be impacted by the nascent recovery in the US, the market's take on the Fed's take of when interest rates there should be raised, as well as the cross-currents of Eurozone QE and commodities prices. Added to all of that will be unexpected shots in the international currency wars; we've already seen numerous howitzer shells unexpectedly lobbed over the line by a number of the world's central banks. And that's just in January! If you needed any more proof that markets are in for a ride, take a look at this chart showing the DXY deviation from 3-year average. In short, when the $US Index rises by more than 8% from its 3-year average, 12 months' later equity market volatility increases significantly. One year after a currency appreciation can be difficult for markets. Why? Click here for more from Head of Income & Fixed Interest Vimal Gor (VIEW LINK)