JPMorgan On A Long / Short Strategy To Hedge Four Projected Interest Rate Hikes In 2017

The most significant risk for equity markets is higher interest rates, a report from JPMorgan’s North American Quantitative and Derivatives Strategy team says. The April 24 French election and troubles with the Affordable Care Act in Congress, which the bank also sees as major risks, are but icing on the risk management cake that most investors appear to be ignoring. To hedge risk, the bank puts forth a long / short strategy as well as various volatility exposures.

Long / short hedge - JPMorgan notes abrupt change in Fed policy, looking at four rate hikes in 2017

With US volatility strangely low, JPMorgan’s March 15 “Volatility Review” report, authored by Bram Kaplan,...