European Woes Mean A Boost For US Equities

The US markets rallied today, but it might not be long-lived. Part of the reason for the rally can be attributed to negative sentiment by Eurozone investors, as measured by the investor morale index, which hit a 20 month low. This coincides with the escalation of trade tensions between the United States and the European Union, as well as China. The VIX, however, continued to fall, reaching below 14.00 again. This suggests that we might see a repeat of the ultra-low volatility levels we saw back in 2017. Here’s what to expect.