Investor Insight 27, October 2015

In the last quarter volatility has returned to asset classes, with some markets and asset classes showing large short term price behaviour compared to the last few years.

What this increased volatility has illustrated is that it is not what we know, but what we don’t know.

The volatility returning to markets is more a reflection of the risks in both China and the strength of the US economy rather than de-risking due to policy changes in the US around quantitative easing. This volatility has highlighted the challenge of a low growth, low inflation and going forward lower investment return environment.