Fern Wealth’s Director of Investment Management, Alastair McCaig, recently appeared on the Bloomberg Cable show to discuss the recent drop in the crude oil market. He explained that it has caused investors to lose some faith in the market and that more volatility is a bad signal. In the last few weeks, intraday volatility has been much lower, giving investors more time to analyze the current situation. He also discussed the outlook for the next few weeks, which he calls a „good signal.“
Alastair McCaig joined Guy Johnson and Jonathan Ferro for their weekly Cable show to discuss the effects of the Coronavirus on the global market and what to expect in the coming weeks. This was a great time for the FED to hold its interest rate at a record low and cut interest rates, as they did last month. But if the market is getting stronger, it will have to go lower again.
While the news about the Coronavirus is a cause for concern, the recent FED interest rate decision will not impact the overall market. In fact, it is the opposite – the more volatility a market experiences, the worse it will do. And while more volatility is a good thing for some investors, more volatility is a bad sign. By putting a stop loss order on your portfolio, you can avoid this problem altogether.