Now It Is Time To Formulate A Strategic Response Plan

Yes, now is the time to take risks. But don’t wait for the perfect moment. Both the economy and the stock market are showing signs of stress. This is what you should know.

The following is an excuse heard from professional fund managers and risk managers that there is no break up plan.

We are waiting for more signals to confirm.

I read an article saying that there is more room for the stock market to rise.

We will make a decision after the next quarter’s earnings announcement.

I have managed assets for 20 years. I will know when it is. Now is not the time;

I don’t want to put profits on the table;

What is a fixed guarantee?

The last excuse always makes my heart beat faster. Professional fund and risk management personnel never forget the basic knowledge of asset management or learned professional principles, so it is very troublesome.

We fully understand all the excuses and reasons behind them. There is only one problem, even in the economy itself. The reality is that almost everyone has not seen the signs of changing course in time. Or, when asset managers try to squeeze the last 1% of profits, greed will work. There is no doubt that street credit is worth it when selling fund returns to potential investors. I know, too.

I talked with hundreds of risk managers and asked a simple question:; after you have completed the analysis and confirmed that the risk level is rising, what is your company policy? The answer to “Do not understand” is this. Therefore, we pause for a moment and then answer the question: “What measures have you taken to solve the risk and then mitigate the risk?” The answer is usually as follows: Well, we made more analysis and stared blankly at “and me” whether your company has formulated the overdue value assurance plan. What is the packaging assurance?

There must be two problems.

  1. Individuals or companies wrongly believe that they have no direct focus and enough time to obtain more benefits. They will easily identify these signs and take action when necessary.

  2. Individuals and companies are completely unaware of the coming storm. There is nothing they can do about it. You can only wear your seat belt and hope for the best.

The first commodity exchange is composed of mechanisms to offset commodity risks. Hedging is not necessarily complicated, but you really need to enter the derivatives market, and you need to know the derivatives experts in the market.

Term insurance has the same value as insurance. It is impossible to accurately predict when it is needed, nor to control things that cannot be controlled. Therefore, in order to protect yourself and your property, prudent people agree to buy insurance policies in exchange for affordable monthly fees. If there is a high risk that cannot be recovered after a disaster, the monthly quota is an affordable option.

There is also little difference in the amount of regular guarantees. As a small monthly package, the company mitigated their risk of accidents. For enterprises, this means economic stagnation or stock market reversal, both of which can be devastating. Will this happen tomorrow? Can we predict in advance? Very good. The danger of slipping in snow and ice increases greatly in winter. But we don’t know whether it will happen to your family or your neighbors.

Hedging risk is no different. Will the economy decline or stagnate? Will it last 6 months or 24 months? We see interest rates rising with future growth. The company’s profits are under pressure. China’s economy is under pressure and the UK is expected to fall into recession. You really need worse news. Sit down and watch?

This is what you should do. First, forget what others are doing. Because if you follow the sheep, the same sheep will lead you to the cliff. Make your own analysis of the situation. If you can’t survive another recession, or you don’t think layoffs are a strategy, then the reasonable advice of derivatives and hedging professionals may be the answer you are looking for. Don’t know where to find it? Derivative products are not what we do, but what we need to do, so we don’t need to look at them anymore. You’ll be happy to call.