“O Vol, Where Art Thou?”
11:45 AM - 12:35 PM
The recent market environment has been marked by an extended period of low volatility, thanks in part to coordinated central bank efforts in the aftermath of the financial crisis. But how does this differ from other historical volatility regimes, and what is the implication for investors? While investing across multiple asset classes may offer an illusion of diversification, many investors may be unaware of the true risks hidden in their portfolios, especially in a more normalized market environment. Volatility analysis can be a valuable component in an investor's toolkit to highlight these embedded risks, and it may lead to a different perspective on diversification and volatility management, particularly when one needs diversification the most – in an environment of rising risk aversion.