Volatility in the US financial markets continued to collapse in trading on Tuesday as the markets appear to have concluded that short term risks are minimal. The VIX index, which is a measure of “fear premium”, sank down below 15.00 during Tuesday’s session, putting it at one of the lowest levels we’ve seen this year, and within the upper part of the range we saw in the ultra-low volatility environment that characterized 2017. There are clearly many potential issues out there which could cause volatility to spike again, such as trade conflicts and domestic political upheaval. However, based upon the rapid deflation of the VIX, it seems clear that traders are betting strongly against the likelihood of substantial derailment of the markets. However, I would not go so far as to say that the markets are becoming as bullish as what we saw last year. Here’s what to expect.