It seems fairly clear that America, and perhaps other parts of the world, are headed for a recession. What I am curious to know is what this means for implied volatility in the markets. I am aware that one would expect volatility to rise during downturns in the market, but am unsure as to how this translates once the protracted recession begins. And are we closer to the end of the downturn or the start of the recession right now, anyway? Do most recessions lead to prices continuing to be volatile (fear still exists that news can get worse, or optimism that things may get better) or does it generally lead to very little volatility (ie. people accept the recession, and action drains out of the market)