How can investors successfully navigate increasingly volatile markets
The return of volatility across most asset classes has taken investors by surprise this year. Stocks have been highly volatile across the board. Fixed income products have seen their prices fluctuate wildly as central banks began to tighten monetary policy. Commodity markets could not escape either. This collection of in-depth research provides allocators with insights into the causes of volatility across asset classes in 2022.
Digital currencies have grown into a genuine alternative asset class. However, questions about their volatility profile and correlation with other assets still remain.
Central bank policies have rattled bond markets this year. What has the impact been on pricing corporate credit?
For compliance reasons, this paper is only accessible in the United States and Canada
Securitized assets remain largely misunderstood by investors. However, these assets can provide plenty of benefits – including reducing overall portfolio volatility.
During volatile times, investors can be tempted to take cover in more liquid assets – including cash. This can lead to panic selling, but it is best to stay the course.
This paper examines the exposures of low-volatility portfolios to various sources of systematic risk. Low volatility portfolios may struggle to defend against black swan events, however.
For compliance reasons, this paper is only accessible in the United Kingdom
The UK economy and financial markets are going through unprecedented times. Inflation risks have pushed the Bank of England to tighten, giving cause for concern to investors.
Rampant inflation, rising rates, war in Ukraine and now looming recession are making it almost impossible to convincingly predict the US 10-year yield.
Investor sentiment seems to remain bearish, even as volatility has continued to decline since the end of the second quarter.
How best to assess, analyse, and act upon an allocation to defensive equities. The suggestion is that a complex, diversified portfolio is not always sufficient to overcome equity risk.