Summary
Implications: 1. The that the value of an Investment will Decrease due to moves in Market Factors has been delineated. 2.The Basic Factors: (A) Equity Risk, (B) Interest Rate Risk, (C) Currency Risk and (D Commodity Risk have been ignored in many situations and are , now, fatal. 3.The assumptions of Value at Risk are no longer valid - Limited by managerial assumptions! 4.The question at hand is: "What is normal?" There are Normal Business activities and, also Business activities that fall out of the Norm! 5.The probability of adverse circumstances are here and there is A COST associated with not calculating the variables!!!!
Analysis
Commentary:
1.A Financial Crisis has occured, which implicates a broad , global financial, security and global risk left unemcumbered!
2.There will be a slight mitigation of a stimulus package with limited cosequences.
3.There is a heightened Financial Environment , which proposses a continual threat to ALL International Markets. A cosequence not to be denied.
4.Some opportunities MAY prevail with a limited basis for valuation!
5.The answer: Review ALL existing resiliency plans in a timely manner- "Time is of the Essence"!!!!!
