How Quants Calm the Stock Market – Wall Street Journal (subscription)

“It’s quiet out there. Too quiet.”

The number of times that this movie cliché turned trading cliché has appeared in market commentaries recently is a testament to how dull trading has been and how nervous investors are about it.

Stock-market volatility was so low in the first few months of the year that some analysts said bad times were coming soon. Then the market got calmer. Over half of the 25 lowest readings ever in the…