Prior to the government shutdown in early 2019, the prior 20 ones hadn’t had much effect on the U.S. stock market. One study said that the stock market has taken government shutdowns in stride despite all of the endless media coverage about them. The 2019 government shutdown has given a lot of economists pause, though, since it is the longest one yet. During this shutdown, many of them are wondering if things could play out differently this time.
Experienced portfolio manager Sandy Chin provided an informed opinion on what investors should do during volatile stock markets. She said while there are reasons to stay optimistic there are also reasons to be concerned as the shutdown continues on.
The stock market going down by a lot in early December was explained by many as something having nothing to do with the government shutdown. Once the shutdown was setting records, though, it was felt that the markets just couldn’t ignore what was going on any longer. The previous shutdown record had been 21 days, in 1995, and the current one has now entered its 26th day with no end in sight.
Sandy Chin has specialized in trading staple consumer stocks during her 20 plus year career on Wall Street. She established Tidal Bore Capital, a hedge fund she created in 2016. She serves as the brainchild of this organization and uses bottom-up analysis to inform her decisions.
She had been a senior analyst at SAC Capital Management. The first time Sandy Chin managed a hedge fund was at Visium Capital Management. She has also worked at Moore Capital Management as a buy-side analyst and at Neuberger Berman as a vice president and senior analyst.
Sandy Chin started out her career at Bank of America as a sell-side analyst. At her next career stop, Donaldson, Lufkin & Jenrette, she met William “Bill” Leach who would become her mentor. She worked with him for 10 years learning a lot about investing and how to study other business professionals.
Sandy Chin says that Bill Leach helped her advance her career. She was able to be promoted due to his advice and acquired new titles while she was finishing up business school. Sandy Chin says that going to business school while working fulltime was an arduous 2 and a half years but with Bill’s help she met both her professional and academic goals.
To manage market volatility she says you need to research the history of the stocks you are considering. She says you should collect as many professional opinions as you can so you can see if you’re overlooking an important detail. Sandy Chin also says you should invest in new stocks especially when established stocks, like Apple, go from a “buy” stock to a “sell” stock.