Little upside targeting market volatility: Chris Ryan
Former chief executive of Perpetual Chris Ryan has poured cold water on the idea of investing in market volatility, saying it was too early for investors to be rewarded by it.
Speaking at the Actuaries Institute Financial Services Forum in Melbourne, Ryan said that investors cannot expect to receive any upside if they try to invest in widespread volatility overseas.
"Normally, if you invest in things that are more volatile, you're expected to be rewarded more. And while earnings are improving in the United States, it's basically a bottom line improvement without much top-line improvement," he said.
Ryan's comments contradict views expressed by Australian fund managers at van Eyk's recent annual conference that investing in volatility options as an asset class may be a revolutionary way to provide liquidity and greater profits.
Ryan also warned that the investment situation in Europe cannot improve as long as there was no consensus on how long it would last.
"I can't find two views that are exactly the same. Everybody has a different view, that means people are confused, [and] so long as they are confused, things are not going to move forward," he said.
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