Benchmark risk in US and other Western markets falls, but not in Asia or Emerging Markets; Energy’s style exposures have changed, altering characteristics of portfolios making Energy bets; Volatility nears a 12-month high for several style factors.
Several factors have been causing developed markets to be riskier than emerging markets for investors. Diana Baechle, Principal of applied research shared her perspective with Reuters on why EMs are performing better than DMs.
Melissa Brown, Qontigo Managing Director of Applied Research, and Sean O’Hara, President of Pacer ETF Distributors, join Yahoo Finance Live to discuss the inflation outlook, the Fed’s interest rate hikes, economic pressures from Russia-Ukraine peace talks, and CPI data.
Most markets fell in Q1, although commodity-dependent indices such as Canada did eke out small gains. Risk was up across the board and is higher than it was a year ago in most indices. US SH risk is in the 87th percentile relative to history.
Amid rising inflation worries and expectations of additional interest rate hikes by the Federal Reserve, U.S. Treasuries have undergone a huge sell-off in recent weeks with no signs of reduced pressure ahead — but sources said there’s still an important place for the embattled bonds in institutional portfolios