Search this website. You can use fund codes to locate specific funds

Infographic: Market Risk Insights, Q2 2018

Dickensian conditions

 Q2 2018

Risk is amorphous, creating investment opportunities and threats to capital at each stage of the cycle.

In response, investors must watch for familiar patterns and new disruptions amid streams of financial indicators.

Models based on statistical history can serve as useful, if inexact, guides. But we need to use all the tools at hand, going beyond number crunching to consider geopolitical tensions and sustainability concerns, to separate meaningful signals from the noise.

We recommend tracking the following six indicators to recognise risk in its current form – and identify where opportunities lie.

 

 In conclusion

The first quarter of 2018 was characterised by turbulence: it was the best and worst of times. While we can never know the true distribution of asset returns and gauge risk with 100% accuracy, our metrics increasingly indicate downside risk in the coming quarter, warranting a note of caution.

Related articles

SDG Engagement Equity: 2020 H1 Report
International business of Federated Hermes maintains A+ rating in 2020 PRI Assessment
Sharpe Thinking: all in this together?
Sharpe Thinking
The Goldilocks crisis: why we must use Covid-19 to wake-up to climate change
Weekly Credit Insight

Sales Contacts

Antonis Maggoutas, Head of Business Development, Germany & Austria
Frank Poepplow, Sales Director - Business Development, Germany & Austria