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Analysis: CTAs, other ‘uncorrelated’ investments boom in volatility ride – Reuters

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A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., May 18, 2022. REUTERS/Andrew Kelly/File Photo

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NEW YORK, May 31 (Reuters) – This year’s U.S. stock and bond sell-offs have boosted demand for strategies aimed at generating returns less dependent on upside in those asset classes during an extended period of volatility.

Worries over a hawkish Federal Reserve have depressed both asset classes for most of 2022, bruising investors who had counted on a blend of the two to buffer portfolios from declines. read more

Though that trend has reversed in recent weeks, some investors doubt the volatility in either asset class will subside soon, and are exploring often-complex strategies to produce returns even if stocks and bonds fall. read more

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“There has been enormous demand for uncorrelated strategies,” said Charlie McElligott, an equities derivatives strategist at …….

Source: https://www.reuters.com/markets/us/ctas-other-uncorrelated-investments-boom-volatility-ride-2022-05-31/

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