On this week’s episode of Tape Talk, Quint and Daniel discuss how they’re assessing the recent volatility in investing markets.

Under the Surface

While the coronavirus pandemic is making most of the headlines these days there are underlying issues in financial markets that are exacerbating the volatility investors are experiencing. Since last fall the Federal Reserve has been intervening in lending markets to provide liquidity which has only been accelerated as economic conditions have worsened recently.

Risk-Off

Investors must consider that there are really three key issues in the financial market today; an oil price crisis, a fragile credit market, and the headline-grabbing coronavirus pandemic. As these three events converged recently Joule Financial implemented a plan to reduce both equity and fixed income exposure which Quint and Daniel discuss.

Finding Opportunity

While reducing risk is an important aspect of financial management it’s done for an eye towards the next opportunity. Quint and Daniel discuss what they’re watching for clues to add back to investments at some point and where they might look for opportunity in the midst of all the panic.