Stockholm (HedgeNordic) – One of the biggest mysteries in the world of financial markets in the still young Trump era has been the historically low level of volatility despite all the turmoil and geopolitical uncertainties prevailing across the globe.
The current state of the world demands a significantly higher volatility according to the president of the Federal Reserve Bank of New York, William Dudley. Meanwhile, Dudley’s critics believe buyers and sellers can easily agree on prices as there is no dominant scenario in the marketplace. This implies consensus creates volatility, whereas uncertainty does the opposite.
For more information on the low volatility phenomenon and its impact on the performance of CTAs, please access the Mikael Stembom, CEO of Swedish RPM, Risk & Portfolio Management:
VOLATILITY: A ”TAIL EVENT” 2017
Picture: (c) shutter stock.com—olly
