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Corner of Bay Street and Adelaide streets in Toronto. July 25, 2013.
Corner of Bay Street and Adelaide streets in Toronto. July 25, 2013.
(Gloria Nieto/The Globe and Mail)

Trading revenues at the Big Six are far less volatile than you’d think

There is a widely-held belief when it comes to bank earnings: investors should be wary of trading revenues, because they are wildly volatile.

The underlying premise is that it’s simply too hard to predict how markets will perform. The fears are then reinforced by blockbuster blunders that steal headlines, like JP Morgan’s $6-billion ‘London Whale’ trade.