Michael Hunstad, Ph.D., Head of Quantitative Strategies, Northern Trust Asset Management discusses strategies for navigating a new risk paradigm.
More frequent and extreme volatility has become normalized in markets. This volatility is driven by many factors. One of which, Hunstad explains, is that the shift towards passive investing has increased market elasticity over time. Increased market elasticity is directly correlated to increased volatility.
This volatility creates a challenging landscape for investors to navigate. One where using traditional strategies means that advisors might have to take on more risk to achieve the same level of returns. Therefore, lowering risk requires big changes to investment strategies and allocations. Hunstad discusses allocation strategies to de-risk client portfolios in today’s changing landscape.
For more insights, catch a replay of Northern Trust’s presentation at the RIA Channel Mid-Year Market Outlook: Navigating a New Risk Paradigm.
Hunstad discusses all of these themes and challenges at RIA Channel’s Midyear Outlook iSummit. The summit offers 1.5 CE credits and is complimentary for financial professionals.
Michael Hunstad is the Head of Quantitative Strategies at Northern Trust Asset Management, an investment management firm that helps investors navigate changing market environments. Northern Trust is a global investment manager, with $1.2 trillion in assets under management, as of March 31, 2022.