From the desk of Willie Delwiche.
The market is enduring a volatile week, finishing out a chaotic month in what has been an unprecedented year.
- Safe havens have offered no safety as cross-asset correlations have turned positive and balanced portfolios are enduring their worst year since the 1930’s.
- This week, underwater explosions have ruptured gas pipelines in the Baltic Sea, while a massive hurricane has crossed from the Gulf of Mexico to the Atlantic Ocean, leaving a trail of devastation in Cuba and Florida.
- Stocks are now trading at their lowest level in two years and the British pound has sunk to its lowest level in two centuries.
Dismissing all of this as merely challenging seems trite. Acknowledging the difficulty of the environment helps chart a path for moving forward.