Equity markets in constant state of extreme event expectation, says expert

Many of the world's equity markets have entered a steady state of crisis expectation, according to analysis by technology firm Finanalytica.

The firm's framework, which looks at fat tails, correlation asymmetry, volatility clustering and risk asymmetry in market data, shows equity market participants continue to expect more extreme events in most countries.

"For most equity markets we are in a steady state when compared with tail risk measures from the pre-crisis period of the first eight months