Wildex Investment Prepares Portfolios for a Period of Preservation amid Market Volatility

Wildex Investment analysts reported that the allocation balance of portfolios under management has shifted significantly, with alternative investments being the major benefactor of capital flows as investors continued the selloff from major global exchanges.

As earnings season enters its second quarter, performance data released has been strong, yet companies surpassing estimates have failed to be rewarded by the market. In its worst month since September 2011, the S&P 500 lost 6.9 percent ($1.9 trillion) during October, indicating that wide spread sector losses were the result of macro-economic issues rather than weaker than expected performance.

Citing trade war tensions, China’s economic slowdown and the uncertainty surrounding Brexit, Wildex Investment’s Senior Portfolio Strategist, James Callaghan projected his views on how investors should prepare to stabilize portfolios by diversifying into alternatives.

“Whilst we remain mindful that October is historically a more volatile month than most others, we have been very aware and concerned that equity valuations have continued to swell amidst a bull-run that has been subject to little or no correction for the better part of a decade now. Whilst investors have been rewarded for their commitment to equity markets, October’s losses, given the strength of earning reports, would suggest that confidence in the equity place is weakening, and any further passive selling will likely increase the pressure on stocks.”

Going forward, portfolio managers at Wildex Investment are preparing portfolios for a period of weatherproofing as capital flows towards alternative forms of investment increase in an attempt to diversify risks in the face of continued macro uncertainties.

“There are too many potential major economic issues around for one of them not to have a profound effect on the market as a whole. In light of this, we are advising our clients to prepare for a period of preservation by reducing their exposure to equity risk, balanced out with an increase in their alternative allocation.”

About Wildex Investment

Wildex Investment is an independent alternative asset manager, providing a global client base with a tailored approach to the management of their financial responsibilities.

From our Hong Kong, New York and Frankfurt locations, we continue to serve the dynamic needs of private investors, their families and their businesses as together we work towards the consistent delivery of absolute investment returns.