Are investors paying a high price for low volatility due to manager short-termism?

James Budden, director at Baillie Gifford, says, managers need to start labelling performance over short periods as just noise, rather than allowing it to feed into portfolio constructions

Almost all economists and business commentators are doomsayers. Think Peston; a man who made his reputation revelling in the great financial crisis and has stood in judgement on every drama since.  Such people fill our screens with grim tales about soaring debt levels, bubbles of every conceivable kind, taper tantrums, the dire consequences of Grexits and Brexits and inevitable stock market crashes brought on by a myriad of geo-political disasters.  In turn professional investors and fund managers express caution and warn about volatility ahead. They take a short-term view often espou...