Too calm ?

As we approach year-end, implied volatility across equities, bonds and FX has fallen back towards 12-month lows. This likely reflects a certain complacency among investors who, after a generally good year for equity and balanced portfolios, hope to be “saved by the closing bell”. We should, however, be careful not to mistake this calm for a permanent state of financial markets over the next 12 months. Volatility can return quickly if growth, inflation or geopolitics surprise in 2026.