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Fading uncertainty could give risky assets a further boost

Investors have come to expect less volatility in the S&P 500 as the index has recovered to within a whisker of its all-time high. Nonetheless, they are still anticipating considerably more volatility than they have typically discounted in the past after the S&P 500 has recovered from a fall. This suggests to us that the latter has not risen to an unsustainably high level.

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