Low-Volatility Equity Strategy in an Aging Bull Market

CLARICE AVERY, CFA® Investment Strategist Natixis Investment Managers – U.S. Distribution As the equity bull market lumbers through its ninth year, the chance of larger pullbacks in stocks is increasing. Equity valuations are stretched, while fixed income yields are still low and set to rise. And with the Federal Reserve well down the path of…

Why So Quiet? Three Drivers of Low Stock Market Volatility

D. David Jilek, RMA, CAIA® Vice President and Chief Investment Strategist Gateway Investment Advisers, LLC Steady economic expansion and strong corporate profit growth, along with low price correlation across individual stocks, have driven realized stock market volatility to record lows. In addition to these shorter-term drivers, three long-term factors may also be contributing to this…

4 Reasons Why the VIX May Double in the Next Year

By: Brett Olsen – Nicholas J. Elward There has been much discussion lately about how stock market volatility is at near historic lows. The Chicago Board Options Exchange Volatility Index® (or VIX)1, a measure of implied or future volatility, is at a level of roughly 11 as of October 24, 2017. If one looks at the…

The Risk Management Challenge

Managing clients and their emotions is no easy task. Investors are looking for nearly double-digit returns, but say if forced to choose they would take safety over performance. Balancing risk and return is a key focus for client conversations. Our latest Global Survey of Individual Investors found that understanding risk is a major area of…

Low Volatility in a High Risk World – 3 Reasons for Gateway Low Volatility U.S. Equity Fund

As the aging bull market lumbers into its ninth year, many investors are growing concerned about the increasing chance of pullbacks in stocks – and even about the next bear market. Equity valuations are stretched, interest rates for bonds are still low and set to rise, and volatility could reappear any time. Gateway Investment Advisers…

Understanding Subdued Market Volatility

By: D. David Jilek, RMA, CAIA® On June 2, the Chicago Board Options Exchange Volatility Index® or VIX1 reached a year-to-date closing low of 9.75, just above its all-time low of 9.31 in December 1993. While some have expressed a view that widespread volatility selling2 has driven volatility to “artificially” low levels, we do not share this view. We…

Time to Prepare Portfolios for Volatility’s Return?

All has been relatively quiet across global markets for some time now. Except for a few short-lived volatility flare-ups, stocks have been climbing higher in many markets. In fact, the U.S. stock market, as measured by the S&P 500®,1 was up more than 15%* for the one-year period ending June 1, 2017, while the STOXX Europe…

Advisor Atlas: Understanding Brexit

SUSAN R. OLSON Vice President of Government Relations Natixis Investment Managers — U.S. Distribution The June 2016 decision by voters in the United Kingdom to approve the country’s withdrawal from the European Union (EU) was one of last year’s biggest surprises. As the UK government undertakes the formal process of exiting the EU trading bloc,…

Trumponomics: Hope vs. Reality

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution Throughout most of 2015-16, we had been writing about central banks and the effects of their extremely accommodative policies. It seemed to be all that mattered for global markets. When would the Fed raise and by how much? Could…