Every year, analysts flood the market with forecasts on where interest rates are headed. And every year, they mostly get it wrong. Man AHL’s Russell Korgaonkar recently highlighted a key reason: Volatility scaling beats prediction. Instead of guessing where rates will be, the smartest strategies adapt to real-time market signals. Here’s why this matters: 1/ Volatility Clustering Markets move in patterns, and volatility tends to persist. Strategies like risk-parity, hedge funds, and value-at-risk models use this principle to manage exposure dynamically. 2/ Feedback Loops Interest rate predictions often create self-fulfilling cycles, leading to unnecessary market distortions. 3/ Action over Speculation The best investors don’t predict. They react with precision, using quant-driven risk management instead of gut instinct. At PinSec.Ai, we build solutions that help investors move with the market, not against it. So instead of relying on flawed forecasts, we harness real-time data to uncover opportunities in uncertainty. Because in 2025, one thing is certain: The market doesn’t reward predictions. It rewards adaptability.
