'Hard times ahead for investors': Buyers start to de-risk portfolios as macro backdrop deteriorates

Increased volatility

Tom Eckett
clock • 4 min read

Fund buyers have started to take risk off the table in their portfolios amid a worsening liquidity backdrop, continued macro uncertainties and the growing threat of a policy error from the Federal Reserve.

Equity markets suffered record-breaking falls during ‘Red October' as a cocktail of risks - including concerns over the Fed's tightening cycle and FAANG valuations - took their toll sending the S&P 500 to a record loss of 6.9% for the month, its worst month since September 2011. Volatility subsequently spread into other markets with the MSCI All Country World index suffering its worst month since May 2012, dropping 7.6%, while the MSCI Emerging Markets index plummeted 8.8%, its largest monthly fall since August 2015. The rout in the FAANG stocks continued into November with Facebook d...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Equities