Introduction

Inflation is the great force that has been driving all asset class returns this year. It really started with the bond market and rates volatility, which is screaming in the fourth quarter of 2021. The stock market essentially ignored inflation and the signs from interest rate vol in 2021 before starting its descent this year and falling into a bear market. Investors' assumptions around risk, correlation, volatility and forecasting have been put to the test this year. This episode we will be discussing the key themes from the volatility markets in 2022.