Sandy Chin is a seasoned investor who lives and works in New York City. A resident of the city for longer than two decades, she has learned Wall Street well enough to found her own hedge fund, Tidal Bore Capital, three years ago. Chin is also deeply involved in philanthropic endeavors, most of which are carried out throughout New York City, such as running a book drive for an elementary school last summer.
An expert in consumer staples, Sandy Chin is prepared to provide substantial benefits to her clients as compared to other financial services firms in the field in the event that a recession comes around before 2021.
Let’s look at how Chin looks to deal with these issues.
Previous Government Shutdowns Weren’t A Big Deal.
In the United States, President Donald Trump opted to put hundreds of thousands of federal employees’ jobs – including their paychecks – on hold as a means of putting pressure on the United States House of Representatives to support legislature that Trump asked to include several billion dollars to construct part of the proposed border wall between the United States and Mexico.
This shutdown lasted about a month, making it the longest shutdown in United States history. Government shutdowns of previous years haven’t had that much of an effect on financial markets’ performance. The most recent shutdown, on the other hand, had a noticeable effect on the nation’s financial markets.
Whether or not the United States’ economy falls into a recession this year or the next, things like the Federal Reserve’s interest rate on treasury bonds, financial statements of the country’s largest businesses, and the ongoing tariff war being waged between the United States and the People’s Republic of China all will have a major effect on the economy. Since this is likely to mix the market up substantially while taking exception to consumer staples, making consumer staples relatively more valuable as compared to other goods, investors in the sector like Sandy Chin are prepared to help their clients get more from the upcoming recession that has tauntingly been looming on the horizon.
Neutralizing Volatility Is Constantly A Challenge.
Volatility, in the context of finance, refers to how widely dispersed the returns from securities are. This statistical tool is measured using a variance of standard deviation to measure how widely dispersed those returns are or how far they are from market indexes.
There is no negative or positive measure of volatility. Rather, volatility simply refers to how much a share’s value is likely to change.
Stock markets, at large, can also be volatile. During times when the market widely rises in value and soon after crashes, stock markets can be referred to as being volatile. The go-to metric used to gauge market volatility is the Volatility Index, more commonly known as the VIX. Made by the Chicago Board Options Exchange, the VIX indicates how much a stock’s value is likely to change in a month’s time. The higher the reading, the more volatile or risky investments are.
Here’s One Way That Sandy Chin Deals With Volatility.
Sandy Chin learned quite a bit from her mentor, Bill Leach, as far as the volatility of securities, financial markets, and other securities or investments are concerned.
Bill was already an expert in consumer staples by the time Sandy Chin was hired at the law firm he was working for at the time, Donaldson, Lufkin & Jenrette. Mr. Leach informed Sandy over the first decade that they worked together about the intricacies of the consumer staples portion of the United States’ economy and the world’s economy, as well as the companies that do quite a bit of business in the consumer staples world.
Consumer staples, as their name implies, are items that consumers consider to be necessary for living their day-to-day lives. Although consumer staples are different all over the world, the population of every area on planet Earth considers things like food and toiletries to be consumer staples. This class of goods also includes the likes of tobacco and alcohol. They can be considered more of a staple in countries that are home to populations that use them more than the United States does.
Since the market for consumer staples holds true over time, not changing in the way of seasonality or budging very far for periods of economic recession and bear markets, they are considered to be reliable anchors for people and investment firms to diversify their portfolios with.
Tidal Bore Capital, the brainchild of a hedge fund from the likes of Sandy Chin and Billy Leach, has dealt almost exclusively in consumer staples since the firm opened its doors to the countless clients of New York City, New York, in 2016.
Here’s Why Sandy Chin Likes Dealing In Consumer Staples So Much.
It is generally true that most companies involved substantially in the world of consumer staples will not have volatile share prices or financial statements. However, this also means that the returns that Tidal Bore Capital offers on its consumer staples hedge fund are less likely to be very much greater than gains from most other investments.
However, with a solid upbringing from her mentor and a good background in education, Sandy Chin considers the analysis of the sector of consumer staples and its constituents fairly easy. Ms. Chin isn’t as big of a fan of other areas of American industry as virtually all other investment professionals are, something that isn’t necessarily popular in the United States, though she genuinely enjoys studying consumer staples.
Wendy Chin’s and William Leach’s clients at Tidal Bore Capital generally withdraw their investments in consumer staples made by other firms and place them entirely into the hedge fund at Tidal Bore Capital. Although these clients almost always keep their investments in competitors’ portfolios and funds, they trust Tidal Bore Capital with the outcome of everything associated with consumer staples.
In a recent interview, Sandy Chin even went as far as indicating that the sector of consumer staples is an “exciting sector,” at least as long as investors play their cards right.
Follow Sandy Chin’s stock recommendations here: https://stocktwits.com/sandychin