How a looming trade war is reversing multi-asset correlations
April 26, 2018 11:00 AM EDT / 4:00 PM BST
The first quarter of 2018 was characterized by the dramatic return of share price volatility. At the start of February, strong wage rises in the US revived concerns over rising consumer price inflation, triggering a simultaneous sell-off at the stock and bond markets. This had a strong adverse effect on multi-asset class risk. More recently, however, worries about a potential trade war between two of the world’s biggest economies led investors to reallocate funds from risky equities to the relative security of government bonds and safe-haven currencies, thus returning to the more familiar patterns observed over most of 2017. In this 30 minute webinar, Christoph V. Schon, Axioma's Executive Director of Applied Research, analyzes how these events affected the movements and correlations of multi-asset class risk factors and the impact on a global model portfolio..
Christoph V. Schon, Executive Director of Applied Research