Currency risk is a significant source of unrewarded risk for many investors. If mitigated, currency risk can be redeployed into better return-seeking opportunities. Investors should adopt a currency policy addressing two main questions:
- What is the hedge ratio that best meets their investment objectives?
- Should currency exposure be managed passively or actively?
Game of Thrones, whether you know it as the popular fantasy novels or the HBO TV series, likely conjures up dragons, magic and medieval politics. But what really lends the series its evocative, distinguishing ambience?
The market turmoil over the last week has been disconcerting for many investors. After the placid markets we’ve had since late 2016, the violent moves of the last few days, culminating in significant moves in the spot VIX on Monday, February 6, feel ominous. The same question is being asked by investors and the media: Is this a bull market correction, or is it the start of a true bear market?