WEBVTT

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Volatility has been so low and not only is it
low, but it's continuing to

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fall, and we think the reason that we're
seeing such low volatility on the surface

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is that stocks aren't very well correlated
with each other. So you know some group of

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stocks goes up today and a different group
goes down. Um, Tomorrow a different group of

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stocks will go up and, and another set will go
down, so stocks are not highly correlated with

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each other, um, and that can tend to keep, so
if you've got some up and some down, you've got

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not much move in the market. But I think the
problem with that is it really masks a lot of

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underlying volatility. So while the market
itself is. That volatile. There's certain

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industries, let's say semiconductors for
example, that are extremely volatile. There's

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certain styles of stocks, for example, stocks
with good momentum, have become highly

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volatile. And so I think that overall low
level of volatility kind

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of lulls investors into a false sense of
security. They don't worry that I'm going to

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buy stocks today. And then lose 5% tomorrow,
um, and, but

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depending on which stocks they buy, they could
lose 5% tomorrow because they're kind of

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missing that underlying volatility.