28 Sep 2019

Investing in an era of heightened risk velocity

Article Image: 
Thumb: Investing in an era of heightened risk velocity
by Seema Shah, Chief Strategist

For investors navigating current market conditions—an environment where a single tweet can change the market direction and momentum—it is not just the risks themselves that are challenging but also the elevated pace at which risks can move from peripheral threats to portfolio impacts. We call this "risk velocity." This paper explores the primary drivers for this phenomenon and potential asset allocation implications.