Investors hedging exposure to markets, despite ‘good’ economy: CME’s Terry Duffy

The U.S. economy may be thriving under President Trump, but more investors are mitigating risks, according to Chairman of the Chicago Mercantile Exchange (CME) Terry Duffy.

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The U.S. unemployment rate is at historical lows, and the GDP is growing faster than it has in a decade, according to the White House.  And despite double-digit growth in five of six of their asset classes, Duffy said U.S. margins are still “very thin” and investors are “hedging up” to combat volatility.

“As much as the economy is good, businesses still need to manage their risk,” he told FOX Business’ Neil Cavuto on “Cavuto: Coast-to-Coast.” He also cited February’s surge in volatility as an example.

“February came along and the volatility clock ticked 12,” he said. “Nobody saw that coming, and so nobody can afford to just let that sit on their books and take the exposures when volatility rears its ugly head so quickly.