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The last couple of trading days notwithstanding, volatility in the equity markets has been exceptionally low over the last few months. Interestingly, the low-volatility environment is not just confined to the stock market. It has been awhile since we last highlighted the Baltic Dry Index, but it is interesting to note that the index, which is known for its big up and down swings, is currently trading in an exceptionally narrow range.

Over the last four weeks the Baltic Dry Index has traded in a range between 735 and 757, which works out to a little under 3%. The last time the index traded within a 3% range over a four-week period was back in August 2003. Also, going back to 1989, the average four-week range for the index has been 15%.

(click to enlarge)

Source: It's Not Just A Low-Volatility Stock Market