Market Risk 10.22.12


This is a model for measuring Market Risk in the overall equities markets. There are the short term indicators of which a simple average is calculated and a simple average of long term indicators. The short term are plotted on the horizontal axis and the long term indicators are plotted on the vertical axis. The goal is to identify the levels of risk within the market at a point in time.

Risk management is not a straightforward proposition in the markets. This will only give the reader an idea of the current level. It is important to note the 2008 beating in the markets came while this was in the middle box, albeit while trending from higher levels of risk the year before.

I welcome any feedback or suggestions.

Please consult your financial advisor before taking any action. This is not intended to be a substitute for financial planning, wealth management, or any other financial advice.

 

 

Advertisements

About Consulting With Results
Experienced Consultant focused on delivering results across various industries, and throughout the value chain.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s