Risk-protecting strategies seen adding to wild market swings
Sums in risk-parity funds and ETFs have been so large that a wave of investor selling will start a wider market rout
Thu, Sep 10, 2015 - 5:50 AM
An explosion in investments aimed at avoiding market pratfalls has become an investment rage in recent years as global central banks pumped trillions of dollars into asset markets to spur economic growth .
ON Wall Street, a cure is proving to be as nearly as bad as the disease.
Investment strategies that promise to insulate investors from risk are being seen as actually having contributed to the wild market swings in recent weeks.