FYI: Many Wall Street analysts expect stock market volatility to spike in 2017 after several years of essentially quiet trading. But investors aren’t buying it and are moving away from the securities designed to protect against the risks of a more volatile market.
The two largest exchange-traded funds that offer low-volatility strategies have seen pronounced outflows over the past week, extending a 2017 trend. The shift comes at a time when political and policy uncertainty are high and valuations are stretched by several measures. In addition, the Federal Reserve is widely expected to raise interest rates multiple times this year, which could fuel a market that’s likely to see sharp gyrations.
Regards,
Ted
http://www.marketwatch.com/story/investors-retreat-from-low-volatility-etfs-ahead-of-higher-rates-2017-03-15/print
