MARKETS IN THE CORONA VIRUS CRISIS (Continued on 2019-04-03)
- This is the update of last weeks' blog as we promised. We have now completed sixth weeks of the COVID-19 Black Swan.
- The chaotic psyche of the COVID-19 market started to show similarities to the Financial Crisis.
- Confusion has set in to the markets. Confusion became normal. We also observe some getting used to the bad news.
- Annualized volatility has decreased a little to 81.5% but is still around the historical high levels.
- We believe that the reality of jobless claims has not set into the markets yet.
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 previous posts here:
- Part 1: https://www.altadata.io/blog/markets-in-the-corona-virus-crisis
- Part 2: https://www.altadata.io/blog/markets-in-the-corona-virus-crisis-first-update
- Part 3: https://www.altadata.io/blog/markets-in-the-corona-virus-crisis-second-update