Managing The Sequence of Returns Risk
The equity market is fraught with uncertainty, and many experts are still unable to fathom the present level at which equity indices and stocks trade. Many valuation matrices appear to be exaggerated. Even the finest skilled investors might be caught off-guard by the quick and rapid fluctuation in the stock market. For example, despite the discovery of corona virus in November 2019, equity markets throughout the world continued to rise, only to plummet by about 40 per cent in February and March 2020. This resulted in a significant decrease in the value of investors’ portfolios.