Investors are increasingly turning to bank quantitative investment strategies for protection that will react faster during sudden market upsets.

Volatility has eased after a mid-October bout of turmoil, with the Cboe Volatility Index back below the past year’s average. Risks appear to be fairly mixed. On the one hand, there’s the possibility of an AI-driven stock melt-up into year-end. On the other hand, strategists point to high valuations and the reliance on a narrow set of companies to lead the rally.