What Happens After
By Aaron Izenstark, Co-Founder and Chief Investment Officer
Let’s take a look back at NYSE activity. Besides 12/24/2018, there have only been two instances, since 1994, that the percentage of stocks on the NYSE, trading above their 200-day moving average, fell below 10%. See Fig. 1.
Fig. 1 IRON Financial, 2019
These instances are infrequent. In this example, the exceptionally low performance can be averaged to once every eight years. But the more reassuring fact is that the NYSE rebounded following the drops in 2008 and 2011. Revisiting the indices at 12, 18, and 24 months later, they were back to posting healthy gains. These were the worst of the worst times, but months later, you would have never known.
If exposure is a point of concern, IRON Financial can help you manage exposure. For example, our IRON-TTAM All-Cap Alpha Equity Strategy seeks returns in every market environment through diversified exposure to various segments of the equity market by size and style. Another solution is our IRON Convertible Strategy. This strategy seeks to provide both managed exposure and downside protection by combining benefits of equity and fixed income instruments.
Please contact your Regional Product Specialist for more even more exposure ideas.