On earth as in markets, humans have been trying to domesticate mother nature for their own benefit. But Nature always takes back its place.
Over 6,500 lines of data have been investigated, spanning back to 2004 to explore a comprehensive set of eight asset classes and their respective traits, highlighting return and volatility over various points in the cycle.
Investors may view emerging markets as particularly vulnerable to volatility, since the asset class typically sees outflows during times of market stress. However, emerging markets are not all one and the same.
Considering the current macroeconomic environment with little expectation for a rise in interest rates in the short term, insurers may want to consider a more dynamic approach to lock in spread levels.