Beatriz Gimeno comments on Risk-off
Beatriz Gimeno is gead of Fund Selection at Morabanc in Andorra, and a member of InvestmentEurope’s Editorial Board.
In January 2016 she commented on the following question:
Q.Have you had to review your fund selection (and/or asset allocation) positions in any particular way in light of the recent risk-off shift in global markets experienced at the start of 2016?
A. “Same problems different year,” I would say.
Oil, the Chinese economy and interest rates in the US are still the major reasons for concern. Noise has increased during the first weeks of this year and volatility has risen again. Proof of that is in the drawdowns in the markets. Performing deep analysis of the portfolio in terms of liquidity and other possible risks is crucial. Also, take into account if the manager has suffered some difficult years when managing the fund – it would be a key part of the analysis. In fact, it is an excellent way to obtain real results in a stress test.
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