Risk Is Out – The Strategies Money Managers Prefer For 2023 💸

Risk Is Out – The Strategies Money Managers Prefer For 2023

Following the pandemic-influenced surges in tech, cryptocurrencies, and meme stocks, it seems 2023 has most money managers opting to lower their risk at all costs. A risk appetite indicator provided by State Street depicts three straight months of negative risk appetite from institutional investors, the longest period of worry for seven years. With the struggles of the banking industry and the newest addition to the higher federal funds rate, money managers are forfeiting some gains to control their risk at the chance that a recession occurs in the next twelve months. However, that isn’t to say that all investors don’t care to miss a bull market unfolding in some time.

The Cboe Volatility Index, otherwise known as the VIX, is one of the most accurate measures for Wall Street’s fear. Currently, the VIX has reached lower levels not seen since 2021, encouraging several investors to jump back into the market in hopes of larger runs. However, uncertainty continues to reign high over the minds of traders and investors; a robust job market, looming banking pressure, and a crippling real estate industry have left all eyes on the Federal Reserve’s plan for the rest of the year. Despite the hawkish words said by Fed Chair Jerome Powell after the recent interest rate hike, several investors retain that the ongoing losses of regional banks will lead to rate cuts before the end of the year. With April’s inflation data releasing this upcoming week, investors must determine whether inflation remains to be priority one, or if the durability of the banking system needs further aid through looser fiscal policy.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.