I was on BBC a few days ago to talk about the market's reaction to the "fiscal cliff" legislation. I had hoped to use the opportunity to spend some time clearly outlining a concept I discussed in my final webinar of 2012. The BBC economics reporter prattled on longer than expected so I only had about 60 seconds to outline my market observations, which I have termed the New Normal. The idea is that after four years of above average volatility in the US equities markets we had clearly entered a period of reduced volatility. And with the failure of each successive negative macro headlines failure to increase volatility, but for a few hours, this period should be accepted as the New Normal.
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