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Jakarta Post

Taking advantage of 'temporary' market turmoil

  • Farash Farich


Jakarta   /   Mon, March 30, 2020   /  11:15 am
Taking advantage of 'temporary' market turmoil A woman walks past a large screen showing the trading numbers on the Indonesia Stock Exchange (IDX) in Jakarta on March 9, 2020. (AFP/Adek Berry)

The stock market has declined by more than 30 percent year-to-date, while the bond market has erased its entire capital gain of 2019.

It is indeed a challenging time for asset managers in the capital market, both those who work as professional portfolio managers at institutions and individuals who manage their personal or family’s portfolio.

Now we are witnessing the highest year-to-date price correction since 2008. The previous significant year-to-date correction was in 2015 when the stock market declined by almost 20 percent. The bond market that outperformed strongly in 2019, marked by the declining 10-year government bond yield from 8 percent at the end of 2018 to 7 percent at the end of 2019, has had to accept a yield increase from a low of 6.5 percent in February to over 8 percent today.

The recent sell-off in the global and Indone...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.