Low volatility investing exploits low risk anomaly

Whilst these comments are interesting and true in part, the fact is that risk in asset classes and sub-classes is not static and indeed, changes over time. There is thus an inherent bias and flaw in just labeling assets as high, medium or low risk.

The fundamental questions which should be asked are: where are we now in the investment cycle (ie positional awareness), and am I being adequately rewarded for the risk I am taking in an asset class?

Once these questions are addressed, then the investor is better placed to make more sensible and effective asset allocation decisions.