•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Gerlof de Vrij Benedicte Gravrand, Opalesque Geneva:

Many are commenting on volatility these days. Mohamed El-Erian for example wrote about Wednesday’s gyrations of U.S. equity markets, and listed six rules for navigating volatile markets. BlackRock suggested the US equity markets shut down in times of high volatility. William Ackman, head of hedge fund firm Pershing Square Capital Management, said market volatility, driven by short-term money, had compounded investors' fears and led to more selling in markets.

Volatility levels were more stable in the last couple of years, and perception of risk got a bit relaxed, so the recent occasional vol spikes have made us more alert. The spikes have the power to alter perceptions of risk.

Participants at the recent Opalesque Netherlands Roundtable commented on the phenomenon.

If volatility becomes too high, like in August, it becomes challenging for almost everyone, they said. "If you go into a month like that being completely long volatility, it is too costly an effort to do......................

To view our full article Click here