One of the first things I remember hearing when I came to Calamos almost 15 years ago was that “volatility creates opportunity.” While times of heightened volatility are never comfortable in the moment, I often think of this phrase to try and put things in perspective.
I specifically remember times during the 2008/2009 crisis when we were seeing convertible bonds trade so far below their intrinsic value that the toughest question to answer was, “What are we missing, who would possibly be selling at these prices?” Now I look back and find it hard to believe some of the investments that we didn’t make.
Reflecting on experiences like that reinforces to me how important it is to be very aware of the near term but to not lose sight of the longer term objectives—both in good times and bad. I have had the opportunity to work with some tremendously talented investors at Calamos. One of the key lessons I’ve observed is that with investing, you can manage the risks, but you cannot manage the returns.
Separating the signals from the noise in the market is often the most difficult part of our job, and in periods of extreme volatility, getting caught up in the day-to-day moves can be a big distraction. I’ve found our team approach to be very beneficial in that regard. When things get uncomfortable in the moment, the communication among our team keeps everyone focused on the main goal—creating and preserving our clients’ wealth.
For more information, see:
Return to the Volatility Guide
Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.
Past performance is no guarantee of future results.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.
Before investing carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information or call 1-800-582-6959. Read it carefully before investing.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE