(Valuewalk)
The US quantitative risk model at AllianceBernstein was in neutral for months, but jumped several levels right into high risk immediately following the Brexit vote. Their forward-looking global risk management model is showing signs of potential increased volatility ahead. In this investing environment recognizing crowded trades and the relative importance regarding stock selection can be the key, the report advocates.
Macro considerations are likely to dominate markets in an environment as a wait and see attitude relative to the Brexit “divorce” needs to play itself out.
