Investment firms are losing more than ever this year, with some totalling losses of more than 50% before the end of Q2, it raises the question whether asset managers are handling risk and anticipating the downswings.
With recent sell-offs -notoriously in the technology sector- and large business journals such as Forbes acknowledging the possibility of a recession, investors need to start mitigating the risk they face as inflation and interest rates are constantly rising.
In the foreign exchange market, the Euro plunged to its 20-year low largely due to deepening concerns of possible crises related to the energy and agricultural sector, forcing countries like France to enforce reduced energy consumption to prevent outages. Meanwhile, the dollar shows signs of strength and gives hope to the investors looking for risk-averse currencies as the U.S. Federal Reserve continues to raise Federal rates, a total of 5 times this year.
Recently, September 13th marked the biggest market drop in the last 2 years, The S&P 500 fell by more than 4% and the Nasdaq 100 lost over 5%. The US inflation reading is what sparked the downfall, revealing a much higher inflation level than anticipated.
We believe making money is easy, but losing money is even easier and it is paramount for companies as well as retail investors to consider risk mitigating strategies just as much as portfolio enhancement strategies.
At Azzilon we pride ourselves with financial instruments developed for mitigating unforeseen factors. Our portfolio includes dynamic products adaptable to current market trends, volatility levels and desired investment universe. Our offerings include but are not limited to participation products, Yield enhancement products, and defined outcome products.