VOLATILITY EXPERT: Get ready for more extreme days in the market
Bob Bryan
BusinessInsider.com
Jan. 24, 2016
The start to 2016 has been a wild ride for investors in the markets and it might be a sign of what’s to come.
According to Todd Hawthorne, the lead portfolio manager at Boston Partners, the swings and volatility in the stock market of the past few days is going to be the new normal for 2016.
“This is a resumption of normalized volatility behavior, and I expect it is what we’re going to see going forward,” Hawthorne told Business Insider.
Hawthorne’s firm has $72 billion in assets under management.
Hawthorne, who specializes in managing volatility, believes that despite the common assumption that more swings are bad for stocks, this is actually just a return to normal. He notes that the long-term average of the VIX index, which tracks volatility in the S&P 500, is about 20 (according to the CBOE, which developed the index, its average since 1990 is 20.02).
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