Tag Archives: Fei Mei Chan

Valuing Low Volatility: Does Timing Matter?

If early January is any indication, 2016 should be another year when low volatility strategies will be in vogue. Popularized in the turmoil following the financial crisis in 2008, low volatility strategies, as the name denotes, serve well in times of equity upheaval. And despite bearing lower risk low volatility strategies have outperformed their benchmarks Read more […]

Not Your Father’s Low Volatility Strategy

Low volatility strategies were a popular and growing category in 2015, and if the first several days of 2016 are any indication, it wouldn’t be surprising to see their popularity continue in the new year. That said, the topic of low volatility investing often comes with much discourse. A frequent argument is that a low Read more […]

Rising Rates’ Silver Linings

Bond values will, definitionally, fall when interest rates rise. However, different types of bonds have differing characteristics. The chart below shows the annual performance of the S&P 500 Bond Index and the S&P/BG Cantor 7-10 US Treasury Bond Index. (The S&P/BG Cantor 7-10 US Treasury Bond Index is the treasury index most similar to the Read more […]

Perseverance and Low Vol

“He conquers who endures.” ~Persius Weak markets tend to make low volatility indices shine. As a strategy that attenuates the performance of the broader market, the S&P 500 Low Volatility Index had lagged the benchmark S&P 500 by 1.22% from the beginning of 2015 thru July 31. As of last Friday, the tide has shifted Read more […]

What Rising Rates Won’t Do

Here is a dramatic chart: It provides a complete history of the trajectory of interest rates over the last sixty years—and also the backdrop for why there’s so much ado about rates today.  It also explains the consensus sentiment that there is only one direction for interest rates to head. We have no desire to enter the pervasive Read more […]

Tapering Away

Next week the Federal Open Market Committee, meeting for the first time since July, is widely expected to announce the tapering of its quantitative easing program.  Whether the Fed begins to reduce its bond purchases now or later this year, most observers recognize its inevitability.  Indeed, as we’ve noted before, even the anticipation of tapering Read more […]