One Wall Street measure of market fragility just hit its highest possible level. The last time it did, volatility spiked.

UBS’s market fragility indicator reached its maximum level for the first time in two years on August 19. This increase comes ahead of the Federal Reserve’s next meeting and US midterm elections. The Swiss bank’s « Turbulence » index is designed to forecast market fragility. Historically, this indicator level had preceded a sharp increase in volatility.

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