Eoin Murray, head of investment at Hermes Investment Management, expects greater returns amid market volatility as he looks at the five key risks investors could face over the next 12 months.
The ability of investors to digest uncertainty has never been stronger than in 2016, as equity markets moved serenely past Brexit and the ascent of Donald Trump. But does the current calm mask underlying fragility? Volatility - expect a bumpy ride ahead Across the board in 2016, long-term implied volatility measures fell for all asset classes, excluding bond volatility. In the last quarter, we saw a modest spike around the US election, but that dissipated very quickly. That is consistent looking at 2016 in its entirety, with each asset class choosing different times to have a shor...
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