Biggest Enemy in 2021 Is Volatility, AIM CEO Lee Says

The video discusses the current market dynamics, focusing on the influx of retail and institutional investors in the US equity market, particularly from Korea. It highlights the ongoing liquidity and speculation, with no significant changes expected until potential rate hikes. The discussion shifts to market volatility, noting the elevated VIX and the early cycle phase, which brings volatility. Strategies for hedging against volatility are explored, emphasizing factor-neutral strategies and portfolio balance. Finally, the video examines trends among Korean investors, noting a shift towards passive investing and ETFs due to market volatility.

What factors are contributing to the current liquidity in the market?

What is the significance of the VIX remaining elevated at about 25?

In what ways are institutional investors reacting to market volatility?

What advice is given regarding portfolio management in the context of volatility?

How are retail investors in Korea changing their investment strategies?