Dear Friends,

We have just come through a week of unprecedented market action and extreme volatility (specifically in Stock Indices). With price swings hitting “circuit breaker” thresholds on multiple occasions during off-hours and daily ranges in excess of 10%, risk management becomes paramount.

The effects of COVID-19 and the current geo-political environment have brought us into uncharted territory, where one report/announcement/tweet could result in a massive movement in price.

Given the current landscape, the risk of carrying any exposure into a weekend is amplified. We saw what happened last weekend, where the developments with COVID-19 along with a stalemate at OPEC, resulted in massive price gaps across multiple instruments at market open.

It’s one thing to adjust/react to news in real-time while markets are open but to have significant developments occur at a time when you’re unable to respond, can put you in a precarious situation.

Out of an abundance of caution, we strongly recommend that all clients minimize exposure before markets close on Friday.