Macro Strategy Views Podcast: why financial markets ignore political uncertainty

In our weekly podcast, Macro Strategy Views, we discuss why elevated political uncertainty is not translating into higher financial market volatility and what the future might look like. Thomas Harr, Global Head of FI&C Research, chairs today’s podcast while our UK and US economist, Mikael Olai Milhøj, joins him. During January, most market-based measures of financial market volatility collapsed, while estimates of political uncertainty were at record levels. Since 2011/12, market volatility has decoupled from estimates of global political uncertainty. We discuss why this is the case and whether market volatility is likely to recouple with political uncertainty.