Even as global equity indices remain near record highs, the pricing of risk is shifting quietly beneath the surface. In the United States, volatility, measured by the VIX, continues to hover in the mid-teens to low-20s, with a wider range and short-term spikes over the past month. In Hong Kong, the Hang Seng Volatility Index (HVIX) has remained consistently higher, reflecting structurally greater market uncertainty. This divergence highlights a simple truth: risk may be universal, but its price is profoundly local.
When markets appear calm, behavioural risk often rises. Investors begin to assume that protection is unnecessary, precisely when it is most affordable.
With market protection still attractively priced, investors have an opportunity to reinforce portfolios before conditions inevitably turn. The cost of preparing today is far less than the cost of reacting tomorrow.
