Since the Covid outbreak of March 2020, The Federal Reserve entered markets in force, spiking their assets purchases and continually expanding their balance sheet.
Consequently, stock and bond market volatility (as measured by VIX and MOVE) have been repressed.
But commodities are a different story.
Crude oil futures are tracking The Fed’s balance sheet pretty closely while coffee “Arabica” futures have soared since July 17th. On the other hand, lumber futures prices have declined considerably since spiking in early May. Steel rebar prices have risen dramatically since mid-December 2020, a month before Biden’s inauguration as President.
Now, that’s volatility.
Home price growth jumped from 4.28% YoY pre-Covid to 14.59% after Fed intervention.