Spot The Ticking Time-Bomb

One of these things is not like the other...

While fundamentals long ago lost any validity with regard the nominal level and risk of US equities, a disconnect in global asset-class volatility cannot last long in a globally-interconnected carry-trading world...

 

 

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Are FX and rates markets - notably much more professional-based and considerably bigger than the US equity market - starting to price in the turbulence historically associated with the end of Fed QE periods?

 

Chart: Bloomberg