Wall Street Week Ahead: Investors seek shelter as US stocks grow more turbulent

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NEW YORK, Oct 21 ― Growing volatility in US stocks is driving a search for defensive assets, though investors may have fewer places to hide this time around. Wall Street’s...

How can we clean such filth? Hadi says after Asyraf Wajdi's mock offer to 'purify' Umno and DAP in unity govtWall Street’s most closely-watched measure of investor nervousness, the Cboe Volatility Index, yesterday hit its highest in nearly seven months, as the S&P 500 slid for the week. — Reuters picNEW YORK, Oct 21 ― Growing volatility in US stocks is driving a search for defensive assets, though investors may have fewer places to hide this time around.

That has left investors piling into other traditional safe-haven assets such as the dollar and gold, as well as short-term debt. Volatility in stocks has been accompanied by increased gyrations in the Treasury market. The MOVE index, which measures expected volatility in US Treasuries, stands near a four-month high.

The index's defensive sectors have been battered this year, with utilities down about 18 per cent, consumer staples off nearly 9 per cent and healthcare down roughly 6 per cent, partly because higher yields on Treasuries have dulled their allure. In currencies, the Swiss franc, a longstanding safe haven asset, stands near its highest level against the euro since 2015. The dollar is up 5 per cent in the last three months.

 

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