Highest Market Volitility Since 1938

Market volatility has sky rocketed to the highest level in 70 years according to Standard & Poor's. At the same time, Merrill Lynch's monthly survey indicates that many fund managers believe equities are undervalued in absolute terms. Yet falling house prices, new credit concerns, and rising inflation may pull markets down further.

Snapshot asks, is recent volatility a sign that markets are bottoming out or that they are waiting for more bad news to take another plunge?

Chicago Board Options Exchange - Volatility Index
Bloomberg - U.S. Stock Volatility Climbs to Highest in 70 Years, S&P Says
Merrill Lynch - Fund Manager Survey Finds Cash Hitting New High as Stagflation Fears Take Hold
Financial Times - Overview: Turmoil follows Fed's Bear rescue