The emergence of volatility as an investable asset has transformed investors’ ability to improve portfolios. The advent of VIX futures, options and the proliferation of volatility-linked ETPs have given investors access to return profiles that no other asset can offer. When equity markets fall, volatility tends to rise, and the strength of that relationship grows the more rapidly markets decline.
To us, volatility is opportunity.
How to harness market volatility
Australia shares fall to 3-1/2 week lows as Iraq worries weigh on blue chips
"It's what's happening in Iraq and the U.S. direction overnight, the ASX is more or less in line with that", John Zhu, a portfolio manager at Triple 3 Partners, an independent investment manager. "Unrest in Iraq - people will be uneasy about that, it's probably a chance for investors to take a breather."
Australia shares slip as banks trade ex-dividend, investors await ECB
"Lately, the trading volume has been extremely light so they're probably waiting for the ECB tonight," said John Zhu, a portfolio manager at Triple 3 Partners, an independent investment manager, noting that the key U.S. non-farm payrolls on Friday will also be on investors' radar.