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The Mystery of Historically Low Volatility

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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

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Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

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