American businesses were pulling back on purchases of new equipment even before the U.K. vote to exit the European Union rocked global financial markets, a sign of corporate caution that will likely continue to act as a brake on the economy.
Massive market dislocations such as the immediate aftermath of the shock Brexit vote on Friday invite superlatives. But neither the change in the VIX volatility index, nor its absolute level, would make a mark in the record books—not even close.
Investors poured money into unconstrained bond funds a few years ago in a move to hedge against rising interest rates. But that early affection has faded as investors are still awaiting a sustained climb in U.S. yields.