Morgan Stanley Investment Manangement：Outlook for 2017 - Runaway Again？

Over the last year and a half, global markets have been shaken by a series of seismic volatility shocks. These began in August 2015
with a massive volatility reading of over 40, as measured by the VIX index, compared to a typical reading of 15-20.1 This spike in volatility, which was driven in part, by fears that the Chinese economy was in serious trouble, contributed to the Chinese stock market collapse and the surprise devaluation of the yuan. This initial shock was followed by a quick succession of major aftershocks spaced over 2016 including the collapse in oil prices in January/February, Brexit in June and finally the U.S. election in November (Display 1).