Finance Professor
Contributor's Links: Money Music 101

Executive with over 25 years experience in financial markets, forex brokerage and treasury operations. Interested in strategic global investment solutions, derivatives & volatility models.

Currently teaching Risk Management, Derivatives, Equity Investments, International Finance ... more

ALL CONTRIBUTIONS

Rising From The Ashes – The VIX In 2020
Until recently, the market has been ignoring any exogenous risk factors with benign neglect.
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A New Kind Of Operation Twist
The decoupling of Wall St. from Main St. has been a phenomenon discussed by economists for some time. Recently it has been suggested that actual and expected support by the Fed has again decoupled markets from economic and corporate fundamentals.
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U.S. Treasuries: A Game Of Charades
There was hardly any place to hide except for Treasuries and a rather choppy gold in an ongoing flight to safety. So is there really a place to hide?
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STOCKS I FOLLOW

DIA SPDR Dow Jones Industrial Average
EZU iShares MSCI EMU Index Fund
FXY CurrencyShares Japanese Yen Trust
GLD SPDR Gold Trust ETF
GM General Motors Company
GS Goldman Sachs Group Inc.
SPY SPDR S&P 500
USO United States Oil Fund, LP
UUP PowerShares DB US Dollar Index Bullish Fund

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Work Experience

Visiting Assistant Professor of Finance
Pepperdine University Graziadio School of Business and Management
August 2015 - Present (5 years 3 months)

Teaching Financial Risk Management, Derivatives and International Finance to graduate students. My Kownatzki’s primary research interest focuses on the important question of how risk and market volatility affects investment returns.

Adjunct Professor
Pepperdine University, Graziadio School Of Business And Management
August 2010 - July 2015 (5 years)

Teaching financial risk management class FINC 634. The class is an introduction to derivatives. Students learn the fundamental concepts of managing financial risk with derivatives such as Futures, Forwards, Swaps and Options as well as practical aspects of trading and risk management.

Owner
FX Investment Strategies
January 2008 - December 2011 (4 years)

Advising individuals and institutions on international investment strategies with focus on foreign currencies.

COO
Concord Global Investments
December 2000 - February 2010 (9 years 4 months)

Senior Management Consultant and COO, responsible for all key operational areas as well as major strategic initiatives and investments for Concord. Conceptualized and developed end-to-end trading solutions for Concord’s global client base.

Education

Claremont Graduate University
Doctor of Philosophy (Ph.D.)
2011 / 2015
Economics and Management
Pepperdine University, The George L. Graziadio School of Business and Management
MBA
1998 / 2000

Publications

How Good is the VIX as a Predictor of Market Risk?
Clemens Kownatzki
Journal of Accounting and Finance
12/15/2016

Volatility is a metric widely used to estimate financial risk. The VIX is an index derived from S&P 500 options prices designed to estimate the market’s expected 30-day volatility. Robert Whaley, the creator of the VIX, argued that it provided a cost-effective way to hedge risk but we question Whaley’s underlying assumption in this paper. We examine the VIX and implied volatility as a proxy for risk. Our studies show that the VIX consistently over-estimates actual volatility in normal times but it underestimates volatility in times of market crashes and crises making it unsuitable for many risk-management applications.

Money Music 101: Essential Finance Skills for Musicians, Artists & Creative Entrepreneurs
Clemens Kownatzki
04/06/2011

This is not another finance book that promises you to get rich quick. Instead, it offers a systematic approach to learn some essential finance skills and to promote good money habits. The book is geared towards musicians and artists but it is also full of vital information for a typical young adult entering the work force or about to head for college. If you are considering a career as a self-employed entrepreneur or in case you just wish to brush up on your financial literacy skills, you will find extremely good value in this book. The book is full of fun and thought-provoking examples showing you how to keep your financial house in order. Ultimately, you will learn the financial strategies that will set you apart from those who live from paycheck to paycheck.