From start-to-finish, December was a fitting end to 2018. The S&P 500 experienced a 15.7% peak-to-trough decline followed by a nearly 7% rally to end the month. December was indicative of the increasing volatility in global markets that we experienced throughout 2018. There are plethora sources available which provide effective solutions in managing hedge funds NYC. The fundamental foundation of global markets has been fragile and remains vulnerable to policy mistakes. The change in sentiment has been abrupt with global concerns stemming from weakening macroeconomic conditions, global policy concerns, and reduced liquidity.

The fourth quarter stood in sharp contrast to the prolonged period of strong macroeconomic conditions, stable policy and excess liquidity that caused volatility to hit an all time low in 2017. The team of Investment Company helps in generating forecasting models apart from managing volatility hedge funds. The initial spark in February 2018 appeared to come and go without a trace as speculation of a purely technical move driven by volatility products was the most common narrative. The resurfacing of widespread volatility during the fourth quarter could not be so easily dismissed. The policy mistakes by the US, UK, Italy, Russia and Turkey exacerbated already fragile markets, culminating in a 3- day whirlwind on either side of Christmas sending the S&P 500 to YTD lows of 2351 (-20% drawdown peak-to-trough) and back up to 2500 just 2 days later.

As a result, higher volatility across asset classes may be here to stay, which is not surprising when considering the excessive risk taking being unwound and a recoupling of asset prices with fundamentals taking place in the absence of the ‘Fed Put.’ Strikingly, despite arguably more consequential economic headwinds globally coming from Europe (domestic political uncertainties), China (slowing economic growth), Japan (prolonged stagnant economic growth) and cratering oil prices (lower export earnings and spending), December volatility in Europe, Asia and to a lesser extent Emerging Markets continue to lag what happened in the US to close out the year. In order to securely manage volatility mutual funds, you should consider the finest capital management company that provides exceptional volatile strategies.