Goldman Sachs Warns of Stock Volatility as Quant Traders Pile In
- Systematic investors have been swooping into US stocks
- Buy options to protect against pressure on prices: Goldman
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Goldman Sachs is urging investors to cushion themselves from the possibility of increased volatility in the next few months as Wall Street quants dive back into US stocks.
Quant investors have swooped into equities as strong first-quarter earnings and resilient growth in the US has kept a lid on volatility. The Cboe Volatility Index (ticker VIX) has been below the 20 level since late March. This has pushed the exposure of systematic investors to above neutral for the first time since December 2021, according to Deutsche Bank calculations.