Why a Huge Chunk of the Market Is a Big Bet on Low Volatility

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Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance and economics.

The past couple months have seen the return of volatility in markets, with the S&P 500 jumping 1 percent last Monday and then falling more than 3 percent on Tuesday alone. On this edition of Odd Lots, we speak to Chris Cole, the founder of Artemis Capital Management and a long-time watcher of volatility. Cole has argued that a lot of the investment strategies we take for granted in markets essentially amount to a giant bet that volatility will remain low. So what happens when vol starts to come back? And how much of the market will be vulnerable? We discuss.

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