Axioma's d'Assier: Now In a Positive Risk Environment

The video discusses market risk and cross-sectional volatility, highlighting the impact of geopolitical events like Brexit and the US elections on investment opportunities. It examines the weakening of the yuan and central bank policies, emphasizing currency wars and liquidity measures. The discussion shifts to geopolitical and style risks, stressing the importance of portfolio construction. Finally, it explores the transition from quantitative easing programs to stock picking strategies, as investors focus on companies with strong fundamentals.

What is cross-sectional volatility?

• The overall risk of the market

• The volatility within a market between winners and losers

• The risk of investing in a single stock

• The impact of geopolitical events on the market

What was one of the geopolitical events mentioned that increased market uncertainty?

• The German elections

• The Italian referendum

• Brexit

• The French elections

What is the primary reason for the weakening of the yuan according to the transcript?

• To strengthen the US dollar

• To export their way out of recession

• To increase domestic inflation

• To attract foreign investment

What is the safe bet in currency markets as mentioned in the transcript?

• Betting on the dollar

• Betting on the yuan

• Betting on the yen

• Betting on the euro

What is the significance of the currency fixing mentioned in the transcript?

• It suggests a decrease in market liquidity

• It reflects the strength of the US dollar

• It shows a record high for the yuan

• It indicates a strengthening of the yuan

What is the current dominant source of risk in portfolio construction?

• Currency risk

• Geopolitical risk

• Industry risk

• Style risk

What shift in investor focus is highlighted in the transcript?

• From stock picking to quantitative easing

• From quantitative easing to stock picking

• From domestic to international equities

• From currency trading to bond markets