Fed Stress Presentation

Fed Stress Presentation

April 20, 2020

Click link below to download Presentation:

Fed Stress Index – Mar 2020 – SA2x

Our current outlook:

Much of the recovery has already occurred in risk-on assets, yet most downside protection is still very expensive
Equity implied volatility is still quite high.
Anything is possible, from a successful vaccine or effective treatment to a powerful second wave and double dip risk-off move.

Our recommendation:

Investors should look to maintain the ability to profit from tail moves in either direction in all markets, rather than making further bets on “risk-on.”