Global equities' risk requires a different perspective

Ashley Pittard | Pendal Group | 22 August 2019 | 0.25 CE

Low volatility suggests that the risk in global equities is low. But it appears to be at its highest in over 20 years. Sectors in favour are rewarded and grow bigger, attracting further flows – and the trend continues, until it doesn't. Valuation premiums in broad segments are a key driver of risk in today's environment, given valuation starting points drive long-term re...