Deutsche Bank Recommends Hedging Fed Volatility, Likes European Value Story

The recent Fed announcement regarding inaction relative to raising interest rates is a market dynamic that could be responsible for an increasing volatility of market volatility that has not dissipated after the September 17 announcement. There is an uncertainty in the markets, one that certain investors might do well to hedge against, a September 24 Deutsche Bank report notes.

Volatility: Deferral of Fed lift-off leaves markets treading water

“Deferral of Fed lift-off to later this year or into Q1 leaves markets treading water,” the report titled "Stuck in the lights" said, nothing that a “heightened sensitivity” to forthcoming economic data “is likely.” In other words, prepare for...