The opportunity in volatility

Chief Investment Officer and founder of Aitken Investment Management
Print This Post A A A

I continue to believe we are entering a more normalised period of risk asset market volatility after many years of extraordinarily low volatility. The “flash crash” this week, more than likely, signals the end of the ultra-low volatility period, as it was primarily driven by the forced unwinding of ultra-low volatility leveraged ETFs. There’s some irony in that!

What happened?

It’s important to attempt to explain what happened on Wall St this week that caused kneejerk ‘risk off’ reactions in all global equity markets. Once we understand what happened, we can then look for investment opportunities amongst this.

I’m going to quote directly from a Bloomberg article, which succinctly summarised the events of Monday and Tuesday morning in Asia.

Take a free trial to continue reading

Already have an account? Login to continue reading.

By proceeding you understand and agree to the site's terms and conditions

Also from this edition