Ruffer portfolio rises over 4% as defensive positioning pays off
Fund managers add to gold and linkers on expectation of central bank impotence
Fund managers add to gold and linkers on expectation of central bank impotence
Shares in London were down again on Thursday, following another significant tumble on Wall Street overnight, while volatility is on the rise, according to the Vix.
The Volatility Index (Vix) has risen to its highest level since August, following a frenetic overnight sell-off in the bond and stock markets.
A sell-off in junk-bonds last week has led to a jump in volatility across most global markets, with Europe seeing its biggest gain since September.
Investors have been warned to steer clear of volatility ETFs or risk entering a “long term money losing opportunity,” as interest in the vehicles steadily rises.
The bulls and bears are out in force, divided over the prospect of a market correction in the near future, but is it wise to hedge equity exposure or is good old-fashioned diversification the way to go?
Rising equity markets and falling levels of volatility place investors at the risk of becoming complacent, according to Schroders’ chief economist Keith Wade.
Volatility spiked and European bonds sold off heavily during a week in which markets were caught short by the European Central Bank’s hint at tapering monetary policy.
BlackRock’s chief investment strategist has said now is the time for equity investors to take on risk and dismissed fears of a sudden spike in market volatility.
Volatility hit a 25-year low last week despite major political events continuing to pose headwinds to the market.
Benchmark indices designed to show levels of ‘fear’ on the markets have continued their deep descent, with US measures reaching 24-year lows.
An index said to represent levels of fear on the markets has hit its lowest levels since before the eruption of the credit crunch after trending lower in recent weeks.