The dominant feature of financial markets in late 2013 and in 2014 has been low volatility across most asset classes.

In stocks, bonds, currencies, and commodities, investors have confronted such uncharacteristically quiet markets that many have started to wonder whether they should position themselves for the next phase of market turmoil. Even Federal Reserve officials have endorsed this view, with New York Federal Reserve Bank President William Dudley warning, "people are taking too much comfort in this low-volatility period. As a consequence, they'll take more risk than really what's appropriate."