Investors should not take market returns for granted as the CBOE volatility index – the VIX – hovers at low levels.
The VIX, often referred to as the Fear Index, is a measure of expected volatility on the S&P500 Index over the next 30 days. High VIX readings mean investors see significant risk that the market will move sharply, either up or down.
Michael Salvay of investment manager Payden & Rygel recently pointed out “it used to be easy to understand bonds – you know, just coupons and maturity”.
It’s an age old question – where to invest now? In different market conditions, different investments look more attractive, whether it is equities, bonds, property, alternatives and cash – the question many are asking is where should money go in 2014 and beyond.
It’s no secret that Australian investors love equities. It may be a surprise to learn that Australian investors have the second highest exposure to equities in the world.
Looking ahead it is clear the risks associated with low growth are diminishing, so what should investors look for in global markets, writes Grant Samuel Funds Management’s Damien McIntyre.
Focusing on traditional valuation measures such as PE or PB ratios may be a thing of the past, writes Damien McIntyre, director and head of retail distribution at Grant Samuel Funds Management. To produce superior risk-adjusted returns for clients, advisers need to turn their attention towards…
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