US Volatility
US Volatility
Here's a great chart that we like to keep an eye on that we first saw published by Rothko Research.
The black line shows the Yield on 2 Year US Treasuries minus the Yield on 10 Year US Treasuries with a 36 month lag - this means that the black line has been pushed forward 3 years (2019 is now in 2021).
Over history this has been a pretty good indicator of the level of volatility (VIX Index in red) that you can expect from US Equities in the coming years.
