MARKETS IN THE CORONA VIRUS CRISIS (Continued on 2019-03-20)
- This is the update of last week's blog as we promised.
- Week of March 16 has been the most volatile week in Wall Street History
- Annualized volatility of the COVID-19 Reality Crisis is now at 84%.
- What this means is that there is 1 out of 6 chance that an investor may lose 84% of his investment by the end of the year.
- …or more optimistically, investors may regain everything that they've lost since the beginning of this year and then some.
- These are truly unprecedendent times.
- COVID-19 reality so far made people more empathetic and polite.
- We are viewing this as a worldwide disaster and taking emergency measures.
- Virus effecting everybody equally has to a large extend silenced the haters and the conspiracy theorists.
When the dust settles, no assumption will be spared. We will re-examine, disect and digest all of our assumptions.
The graph below shows the value of a $10,000 portfolio during the two most severe downturns in the past 80 years.
Volatility is more severe in the Corona Virus Reality down-turn.
Please share your thoughts in the comments section.
Check out last week's post here: https://www.altadata.io/blog/markets-in-the-corona-virus-crisis