Dispersion Trade Unwind Is The Fastest Route To Higher Index Vol

Authored by Michael Ball, Bloomberg macro strategist,

The S&P 500’s outward calm yesterday masked chaos under the hood driven by shifting views on the winners and losers from a mix of AI, policy and geopolitics. 

More macro headwinds could force that high-dispersion regime to evaporate fast and be the catalyst that pushes the index below its recent range.