Increased volatility 'on the horizon'

And Michael Hughes, Barings chief executive officer, says the gradual tightening of credit conditions around the world will be the main cause of it. He also says low levels of volatility in recent years have tempted investors into ‘riskier’ assets in search of returns, under what has proved a false security blanket. “Recent market volatility may well lay the foundations for attractive investment returns over the medium to longer term, but all the indications are that there could still be more weakness to come before we are done,” he says. “The typical extent of a correction during a b...