Befriending Volatility: The evolution of risk management
by Yoonjai Shin, CFA Vice-President & Portfolio Manager, Multi-Asset Management
February 2018
Financial markets have been boisterous in recent weeks, but the frenzy has been building for several months as investors scrambled to participate in the stock market excitement. We view the recent pullback in broad equity markets as a reflection of a correction in valuations more than a meaningful change in fundamentals. Companies are still generating profits and are expected to continue doing so in a macroeconomic environment that remains healthy. However, we have been observing signals that are characteristic of the late stage of a typical business cycle and believe that equity markets have been getting ahead of economic fundamentals. While the investing public in general, flushed with optimism and perhaps some greed, has been chasing higher returns from the financial markets in recent quarters, the Multi-Asset Management team has been working to fine-tune our risk management process.
Read the rest of Yoonjai’s commentary here >>February 2018
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