In this helpful clip from The Macro Show this morning, Hedgeye CEO Keith McCullough discusses volatility. He provides valuable pointers and guidance to help investors risk manage positions more effectively in their portfolios.
“If you can risk manage the things with the highest volatility, you should be satisfied with that,” McCullough explains. “The highest volatility of any asset class is crypto, followed by commodities.”
“The reason why we allocate a lot of assets to things that have a lot less volatility is because they’re a lot easier to risk manage. An equity is going to have less volatility than a commodity, a fixed income position is obviously going to have less volatility than both equities and commodities, and foreign currencies have less volatility than all of that.”
Click above to watch the full clip.
HELPFUL LINKS:
Ricci Reacts | Macro Analyst Ryan Ricci Breaks Down the May 22, 2024 Edition of “The Macro Show"
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