×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: BlackRock | volatility | market | normal

BlackRock's Koesterich Says Buy Volatility During Market Calm

Friday, 25 July 2014 10:42 AM EDT

Investors should seek to profit from a rise in volatility as central banks prepare to tighten monetary policy, according to BlackRock’s Chief Investment Strategist Russ Koesterich.

“The main reason volatility is this low is that monetary conditions are easy,” Koesterich said in an interview on Bloomberg Television. When investors start to weigh U.S. and U.K. central banks starting to tighten “we are going to see a long-awaited rise,” he said.

BlackRock, the world’s largest money manager with $4.59 trillion in assets, recommended investors protect themselves from more volatility in June as the Chicago Board Options Exchange Volatility Index hovered near its record low. The measure has risen less than 5 percent in July to about 12.1, even amid rising geopolitical tensions. The average is about 20 over the past decade.

“We are not suggesting we are going back into a world like 2008 when the VIX was at 90,” Koesterich said. Even going to more normal levels of the long-term average would be a significant jump, he said.

New York-based BlackRock’s view contrasts with that of Pacific Investment Management Co., which forecasts an era it calls the “new neutral” characterized by low interest rates and lower, more stable global growth.

© Copyright 2022 Bloomberg News. All rights reserved.


InvestingAnalysis
Investors should seek to profit from a rise in volatility as central banks prepare to tighten monetary policy, according to BlackRock's Chief Investment Strategist Russ Koesterich.
BlackRock, volatility, market, normal
200
2014-42-25
Friday, 25 July 2014 10:42 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved