Meeting new challenges of capital markets with flexible multi asset strategies

Find out more about the changed market environment, why flexible multi-asset strategies seem particularly suitable for countering this, and about the Berenberg Variato strategy.

A look at the recent past makes it clear: the number of extreme events in capital markets has increased significantly. 2018 was already impressive, with almost the same number of extreme events as during the 2008 financial crisis - one of the worst recessions historically! However, 2020 was even more extreme. The number of daily moves greater than four times the standard deviation of daily moves over the last 100 days had almost tripled. Markets have become more susceptible to quick, sharp movements. During the Covid-19 crisis, for example, we had the fastest bear market ever, followed by the fastest bull market ever. 2020 saw the sharpest increase in realised volatility since 1928, despite a much smaller drawdown than in 1928, 2008 or during the TMT bubble. Even smaller drawdowns lead to higher volatility shocks!

Increased abrupt, extreme market movements are only one of the challenges investors have to face. Market behaviour has changed dramatically over the last 10 years. Why is this and how can investors respond to these challenges?

Read the full publication here

Authors

Prof. Dr. Bernd Meyer
Chief Investment Strategist and Head of Multi Asset
Phone +49 69 91 30 90-225
Ulrich Urbahn
Head of Multi Asset Strategy & Research
Phone +49 69 91 30 90-225

Suitable investment solution

Multi Asset

Flexible-opportunistic Multi-Asset concept with a focus on capital market niches, megatrends, and tactical ideas globally from all asset classes - free from a benchmark.

Fundname
ISIN | WKN:
Performance
1 year
Volatility
1 year
NAV

Berenberg Variato R A

LU1878856043 | A2N6AQ
Date: 28.03.2023
ISIN: LU1878856043
WKN: A2N6AQ
Performance 1 year: -7.93%
Volatility 1 year: 8.06%
NAV: 116.40 EUR