Chief Investment Officer
Financial markets were roiled last week as losses currently estimated in the hundreds of millions were realised in the wake of the Swiss National Bank (SNB) abandoning their currency floor with the Euro. The problem for the market in the short term is the worry that higher volatility will force leveraged investors to sell down positions across the board, and that this selling begets more selling and so on. There is a bigger long term concern that we will get to later.
(For those interested or concerned about how RMG fared during this event. Both our FX and Macro strategies made money and are posting positive returns for January.)

