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Blokland’s daily sketch

Blokland’s daily sketch

02-04-2020

Yesterday’s move confirms that caution is warranted

  • Jeroen Blokland
    Jeroen
    Blokland
    Portfolio Manager

Global stocks fell sharply yesterday, with the S&P 500 closing 4.4% lower. Despite some encouraging signs, neither the coronavirus outbreak or the impact it is having on the global economy have been contained yet. The VIX index rose to 57 and remains extremely elevated, just like many other measures of market risk. The automatic rebalancing of long-term investors like pension funds is likely coming to an end, reducing investor demand. Yesterday’s move was a clear reminder that equities currently represent a two-way risk (more on this tomorrow in our Monthly Outlook) and that caution is warranted.

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As a senior portfolio manager I use charts to illustrate financial issues every day. I tweet my favorites as @jsblokland and was named 'one of the 50 most important people for investors to follow in 2018' by MarketWatch.
Previous editions of the daily sketch can be found on my personal financial markets blog. All graphics provided are collected from Bloomberg data and public websites. They do not always reflect my personal opinion and may also not necessarily reflect the opinion of Robeco. Please cite all references or quote the original source if replicating content.

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