Choosing stress windows for Asia–global equity links
A practical way to pick which crisis periods belong in a cross-market review when Asia–global co-movement is the question.
A Cross-Market Stress Review only helps if the windows are real for the mandate. “Every crisis since 2008” sounds thorough and usually dilutes the reading.
For Asia–global equity questions we often start with three candidates: a liquidity episode (2020 for many desks), a rate-shock year (2022), and a regional equity drawdown that mattered to the client’s own book. The third window is the one outsiders miss — it may be a local bank stress or a commodity-linked selloff that never made global slide decks.
Once windows are named, the review can show whether Asia–global links behaved like the calm-period average, or whether regional equity–equity clustering took over. That distinction changes how stewards write risk language, even when they leave portfolio construction to licensed advisers.
Bring your own third window to kickoff. If you cannot name one, that itself is a finding worth minutes time.