Increased uncertainty has caused a bit of a fright for markets in recent sessions as global equities charted their worst week since the March plunge. Positive earnings reports from big tech names (FANGS) were not sufficient enough to calm investor nerves.
A combination of increasing coronavirus cases (the cumulative total now above 45 million since the crisis began) and concerns around the knock on impact to global growth is likely to keep investors on edge in the short term.
Stock market volatility as measured by the VIX, also know as the fear index has edged higher to a ghoulish level of 40 - twice its long term normal level.
It's important to think about diversifying your revenue streams during these volatile and uncertain periods, whether you are a business owner or an investor. There are a number of key strategies that investors can utilise outside of traditional bonds and equities offering enhanced income, capital protection and inflation protection.
Similarly business owners may need to think outside of their core product set in order to adapt to the post covid world. Whilst easier said than done, coopetition is a diversifying strategy to cooperate with competing companies.
All eyes are on the pending Presidential election and the probable changes to tax schemes. Whether we see a Biden or a Trump victory, only time will tell whether markets will offer investors a trick or a treat.
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