As we headed towards the year-end, the market outlook was supportive: global economic growth was reaccelerating, inflation was expected to stay high but signs of “peak supply bottlenecks” were emerging and developed markets central banks seemed to stubbornly stick to an “uber-dovish” monetary policy.
However, as we get closer to the last trading days of the year, risk assets are going through some turbulence. The Nasdaq 100 index is heading for one of the wildest Decembers in 13 years while the VIX index has jumped above 25.