Markets Are Finally Pricing Fear… But The Fast Money Has Already Sold

Fear is building

Volatility is finally starting to show real stress across markets. Equity volatility is rising, bond volatility is exploding, and hedging activity is concentrating at the very front end of the VIX curve. From European equities to EM stress and rates volatility, fear signals are flashing across asset classes.

The key question now: is this the start of a broader panic phase, or are markets already discounting too much short-term downside?