📝 Shift In Fundamentals Driving Low Realized Vol: Barclays Strategy

Empirically, there is a strong link between the strength of the equity market rally and the level of realized volatility. In particular, volatility tends to be the lowest for moderate to strong positive equity returns. With the economy surprising to the upside, this was indeed the case in 2023. Consequently, Barclays forecast for the next year (and consensus) is stronger than analysts expected 2023 growth to be at the end of 2022

-Barclays Strategy