Over the past two days, Appleton Group has taken pre-emptive steps to reduce market exposure across our risk-managed and hybrid asset allocation strategies. While markets are still demonstrating overall rising trends, the sudden downturn means that many trendlines have now been crossed.

World markets have failed to stabilize in response to global Corona virus containment efforts. U.S. markets are now officially in correction territory after hitting all-time highs just 5 market days ago, marking an unprecedented reversal.

While it is certainly possible that central banks will coordinate interest rate cuts, it would be imprudent to assume that such a move would occur and that an interest rate cut would be beneficial (the markets have already lowered rates on their own anyway). It is also possible that rate cuts may actually do more harm than good as it would encourage risk-taking in an environment where investors are becoming increasingly risk-adverse.

We will continue to closely monitor market conditions for continued weakness and reduce risk further should market weakness persist.