As global rates are rising, money is becoming costlier leading to shortage of liquidity which in turn will cause bounce of volatility, said Gaurav Mehta of Ambit Asset Management.
“One thing, that I clearly agree on is the fact that it is going to be a choppy 2018, so volatility is going to be high”, he said.
Mehta further added, “The reason volatility is going to be high is that unlike the last couple of years where global interest rates were low and hence there was this artificial support of liquidity which was curving volatility, I think that is not the case any more.”