Third Quarter 2013: Chart of the Quarter

The reward for assuming volatility risk has varied dramatically in the past several years. At the last equity market peak in August of 2007 (orange line), there was little reward for moving out on the risk curve. After the great financial crisis of 2008, the compensation for incremental risk (blue line) widened to historic levels. Today’s capital markets (green line) offer a much narrower opportunity set, reminiscent of the August 2007 peak with the exception of Commodities, International Developed, and Emerging Markets stocks. These asset classes remain attractively priced, and we continue to overweight them across client portfolios.

On a quarterly basis, Hirtle Callaghan publishes our perspective on the current market.  We have included the first page of that piece below.  If you would like to receive the full perspective, please contact us.

Download the first page

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