VIIX - Volatility Seems Here To Stay
By Doug Kramer, Co-Head of Quantitative & Multi-Asset Class Investments, Hakan Kaya, PhD, Portfolio Manager, Risk Parity
Our volatility models indicate that a return to the low-vol of 2017 is highly unlikely.
With investor psychology recently swinging from fourth-quarter despair to New-Year optimism, we wanted to highlight that, despite the market recently moving higher, we believe that the higher volatility we became used to in 2018 is here to stay. In fact, our models currently suggest that the chance of a return to materially lower volatility - 11-12% or less - is very low over