It’s hard to see the wood from the trees in times of market shock.
For investors with medium- to long-term investment horizons, it can make sense to “Keep Calm and Stay Invested”. In our rebound analysis, we look at the rebound in markets following other major shocks.
We also look at forward-looking Value at Risk (“VaR”) analysis of downside risk of the portfolios we manage.
Whilst the size and speed of the Coronavirus correction is scary, it’s nonetheless in scope. In our VaR analysis, we look at how the correction compares to previous major shocks as well as the VaR figures for 1) a global equity portfolio and 2) a 60/40 portfolios.