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volatility

Jurassic risk and the chomping of the traditional balanced portfolio

March 31, 2021

The death of inflation has been greatly exaggerated. Its return will first scare, then maim, then ruin the traditional balanced portfolios have that served investors well for a generation. Investors need to prepare for a world of greater inflation volatility. And with it a monumental risk—bonds and equities falling in tandem.

Investors’ great fear

The 60/40 portfolio: Losing its balance

December 14, 2020

The 60/40 portfolio has served investors well for the past 50 years (1). It has been the allocation of choice for traditional balanced portfolios—60% in equities for the good times, 40% in bonds for the bad (and for the yield).

The past 50 years have been characterised by falling interest rates, low inflation and low volatility. A superb environment for both bonds and equities. But we may be entering a regime change which could see these conditions reverse.

How the Coronavirus Impacts the appetite for Cryptocurrency

July 10, 2020

We’ve heard a lot about how the coronavirus has made an impact across the fintech realm, but what about in the crypto space? With an unstable stock market, why weren’t investors fleeing to alternative, blockchain-based assets?

A Beginner’s Guide to Crypto Investing

July 7, 2020

The most frequently asked question I get from people with a new interest in crypto and blockchain technology is how to get investment exposure to the asset class. In this article, I’m going to tell you what options are out there, what, from my view, the respective pros and cons of each are, and, most importantly, which way may suit you best based on your investment size, risk profile, tech understanding and the amount of effort you want to put in.

Why the perfect storm is brewing for Bitcoin

May 28, 2020

A pandemic has struck in the form of Covid-19, grinding the global economy to a halt. Politicians are desperately scrambling to enact legislation to protect their constituents as corporate chief executives jockey for the position of being the first constituent in line for their bailout. Unprecedented payments are being made by governments to their citizens to help meet their short-term obligations, and financial markets have utterly collapsed to the tune of extreme volatility, that in crypto, we call Monday.

Investment of the quarter: Market forces

October 10, 2016

Could currency volatility be the first symptom of wider stress in financial markets? William Cainreports

Could currency volatility be the first symptom of wider stress in financial markets? William Cainreports

Currency considerations are never far away from any debate about the economic fortunes of the world’s three largest economies. China’s switch to a freer-floating currency regime in mid-2015 saw the yuan devalue, triggering a bout of market panic in the third quarter of last year.

Risk dis-Parity? US Treasury volatility creates headache

July 24, 2015

Volatility in the US Treasury market at the end of 2014 could be a taste of the next financial panic. And risk parity, a hedge fund strategy that made hay through leveraged exposure to bonds over the last 20 years, may be part of the problem rather than the solution.

Volatility in the US Treasury market at the end of 2014 could be a taste of the next financial panic.

And risk parity, a hedge fund strategy that made hay through leveraged exposure to bonds over the last 20 years, may be part of the problem rather than the solution.

Risk parity strategies create specific risk levels across an investment portfolio in contrast to traditional allocation models that are based on holding a certain percentage of investment class, such as 60% equities and 40% bonds, within a portfolio.

Dare to be unconventional

June 16, 2010

With the volatility in stockmarkets and the ongoing sovereign debt problems, wealthy families and their family offices are not alone in wondering how the current problems will resolve themselves, writes Marc Smith.

With the volatility in stockmarkets – has there been a satisfactory answer as to why the Dow Jones dropped 1,000 points in 20 minutes last month? – and the ongoing sovereign debt problems, wealthy families and their family offices are not alone in wondering how the current problems will resolve themselves, writes Marc Smith.