Author: Nathan J. Rowader
August 24, 2017
Category: Quantitative Insights
Risk is still low historically, and short-term and long-term volatility are in parity. While there has been a pullback in most markets, we think the low level of risk indicates that this is probably a correction within a bull market.
Market volatility is an indicator of financial stress. Low or declining volatility environments may indicate favorable periods for equity investments, whereas rising volatility periods may favor sovereign debt and developed market currency exposure.