Share This Article Share In a letter to investors sent Tuesday, Vanguard and hedge fund investors expressed concern about the “significant volatility” they said they would see as the U.S. stock market closes on Tuesday.
“We continue to believe that, given the uncertainty and uncertainty around the U and U.K. elections, there is a risk of investors losing confidence in U. S. equities and hedging is no longer feasible for many investors,” the letter read.
Vanguard also noted that hedging had been in short supply in recent weeks, citing the “huge” drop in the S&P 500 index.
The letter said hedging was not a new phenomenon and had been widely used by hedge funds in recent years.
“As long as the market is volatile, there are a number of hedging options available for investors.
But, if the market becomes less volatile, hedging becomes even less likely, and there is greater risk of a large run up in the market, there will be an increase in volatility in equities,” the investors wrote.
The Vanguard letter was released amid a renewed focus on how to avoid the market’s volatility.
The Wall Street, CNBC, CNN, Bloomberg and AP each published similar letters, all pointing to the need to diversify.
Voyager said Tuesday it was looking at whether it should issue a broader advisory or “assess its exposure to certain types of market risks,” including the U, U.k. and the U’s referendum on Brexit.
In its letter, the hedge fund said that hedge funds typically have a higher risk tolerance and higher tolerance for volatility, compared with the general public.
Vendors said the risk of losing money in a bear market and losing it in a bull market were real, and that investors should consider hedging, the fund said.
Vikings fund, which owns $5.4 trillion in assets, has been actively buying and selling stocks since the end of March, buying and dropping shares when markets were hot.
Vantagen’s market cap is around $3.2 trillion, while hedge funds like Vanguard’s $3 trillion.