Salient to Investors:
The HSI Volatility Index reached a six-year low earlier this month, and the Nikkei Stock Average Volatility Index is trading near a 20-month low.
Andrew Wong at Fortress Investment Group said the last time we heard that volatility was never going to rebound was in late 2006, just before the recent financial crisis – when concerns that it might be permanent, it’s typically not long before the regime shifts into something dramatically different. Wong said the 2008 financial crisis heightened investor awareness that the correlation between different asset classes can rise in a major market shock, resulting in large losses in investments that appeared to be diversified.
Read the full article at http://www.bloomberg.com/news/2012-10-30/asia-volatility-at-six-year-low-spurs-hedge-fund-wagers-options.html