we have jurrien timmer, what is your take? will it continue or stabilize? n: i think it is important for everyone to remember that volatility is what you sign up for in the stock market, the value proposition of investing is that you get better returns than from the risk-free asset, but you have to enter volatility, and for the last few years the s&p was up 52% against the record low vol, the analyzed vol was 3.9 in 2017, which was low, and you get the inevitable shakeout. those are actually good because they prevent even bigger excesses from building up. there should be vol, that is part of what people sign up for when they buy stocks. and it has been a very strong game against -- gain against a very low vol, and that is not sustainable. i think volatility is going to be higher, but it should become a that is part of the deal. alix: you have to rethink a portfolio based on a vix of 25, against a vix of 10, and had to do that? jurrien: the vix is like credit spreads, they are normally low, maybe not as low as 10, maybe like 15. then they spike during correct

also with us is jurrien timmer. talk about inflation, accommodation of the speed limit and demand.hael: the bank of england seems to be taking the position that it will be a smooth brexit, that they will be able to withdraw without of upset to the economy. sterling has fallen after the affectinge, which is inflation. at the same time, global synchronized growth is raising the rates in britain. with on of limit low even with brexit, they will run out of workers. that will raise inflation. so they will have to react more. carney was at pains to say, it does not mean that we will raise rates sooner, or even more. david: he kept saying gradually. souter and gradually, there is some tension between those. at times, he says gdp will grow 1.75%, but on the other hand, the supply will grow at 1.5%. productivity is not growing that fast. is he right that they have an inflation problem around the corner? bigien: that is the question here, especially in the u.s. with all of this fiscal stimulus. that is not just the tax cuts. we saw this with the bill coming through congress now, another $500