New York/London — Even a new US president and rising geopolitical tensions could not stop stock markets from marching higher. But that’s about to change, money managers say. They see a market correction, a "reckoning" with North Korea and a bitcoin ETF in 2018. Here are some of the top themes hedge fund firms — and those who invest in them — are looking for in the year ahead: More volatility A pullback in quantitative easing by central banks globally could trigger a downward spiral in asset prices and spell a "significant change" for the macro trading environment, Paul Tudor Jones wrote on November 30. He compared the current bull market to the bubble of 1999. Low volatility is becoming "dangerous" and has lulled investors into a false sense of complacency, he wrote. His firm’s main fund lost 2.1% this year to December 8. London hedge fund manager George Papamarkakis says assets most at risk are those reliant on low interest rates, such as highly leveraged credit, illiquid securitie...
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