With the birth of the so-called "Greenspan Put," the 800-pound gorilla of U.S. monetary policy unleashed itself on capital markets. Today, there is not just one 800-pound gorilla harassing capital markets; there is a troop of gorillas. Easy monetary policies and the resulting mal-investment have prevented fundamentals from fully exerting their influence on prices for more than a decade. As central banks embark on a disjointed and slow unwinding of their balance sheets, we add to these unchartered paths material concerns about the proliferation of rules-based strategies, the Volcker Rule, and uncoordinated circuit breakers. The full consequences and compounding effects of these are as of yet unknown, but investors can better navigate the current risk environment by utilizing dynamic risk management.
CFA Society Beijing are pleased to invite Mr. Brian Singer, CFA, Partner, Head of Dynamic Allocation Strategies Team to share his experience on risk management.