Daily news can significantly impact market behavior, often causing price fluctuations due to the reactions of numerous investors. But while predicting how the market will respond to news is complex, and investors frequently face unexpected short- and long-term market movements, there are tools that have been designed to help in mitigating the effects of news on investments.
When positive news emerges for your market positions, decision-making often feels less stressful as the market moves in your favour. However, managing the stress of a downturn is imperative, particularly when losses may be substantial.
For example, let’s consider the Lehman Brothers crisis in 2008, which broke over the weekend and resulted in substantial market gaps when trading resumed on Monday. That was catastrophic for many of us... Indeed, the S&P 500 decreased by over 38% in that year alone.
Even so, the reality is that predicting market reactions to news—even the day-to-day kind—can be challenging. But that doesn’t change that we, as investors, still have to make informed decisions even when the information isn’t complete.
In fact, this is where technology truly excels. By processing data faster than humans and operating without emotional bias, technology can aggregate real-time information and assess market exposure and risks more quickly and accurately.
During crises, having the right technology that operates intraday with real-time data is essential, especially as it does away with many cons that come from relying on daily valuations. This is especially so when you calculate your Value at Risk based on end-of-day data, which can lead to delayed reactions that can be detrimental.
Additionally, technology facilitates bulk order execution across multiple accounts and trading venues, making it a worthwhile ally to invest and trust in.
But what are your options in this regard?
The Wakett Box has been created to help professional financial investors navigate the tumultuous waters of market volatility caused by news events.
By consolidating various market data sources and integrating advanced analytics, this all-in-one financial software empowers investors like you to make informed decisions rapidly, reducing the uncertainty that can lead to poor investment choices.
With its real-time data processing capabilities, it allows for intraday evaluations of asset performance, enabling timely rebalancing when news impacts market dynamics.
This proactive approach minimises exposure to adverse market movements, fostering more effective risk management. Moreover, the Wakett Box’s efficiency in executing bulk orders across multiple accounts can significantly reduce the time it takes you to act in response to news, ensuring that your team can capitalise on opportunities or limit your losses when necessary.
The best part, however, is that it can be tailored specifically to your needs. Indeed, as we always tell our clients, for any technological solution to work effectively, its users must first identify their specific needs. And that’s how it all starts with the Wakett Box.
So, what are you waiting for? Get in touch with us today to understand where your software is lacking, and let us help you mitigate the effects of news on your investments through our software!