Axioma Insight™ Quarterly Risk Review
Breaking Records… and Sounding Like a Broken Record
Backed by robust economic data, global stocks continued on the upward trend started in the first half of the year. While some benchmark returns advanced at a slower pace this quarter, a few (such as the Russell 2000 and TSX Composite) accelerated. North Korea tensions weighed on equity markets in August, but by September major indices were hitting fresh records. The summer lulls brought relatively muted trading activity, and markets remained calm, despite high levels of political turmoil. Against this backdrop, benchmark risk in many cases hit historically low levels, driven by both lower volatility and lower correlations.
Author: Melissa R. Brown, CFA