Building Resilient Portfolios
Uncertain Times Call For a Disciplined Approach to Building Portfolios For Today’s Markets
Investors are facing unprecedented challenges including extreme market volatility, concentrated stock markets with lofty valuations and ultra-low interest rates. The COVID induced market sell-off in March reminded us of the importance of downside protection and maintaining a disciplined approach to constructing diversified portfolios. Even though equity markets have recovered, the economy is still not back to full strength and the pandemic is likely to remain a serious threat to future growth until such time that a vaccine is approved and widely available around the world.
To deal with these challenges and achieve long-term objectives, investors should keep these three key considerations in mind in order to manage risk and build resilient portfolios that can adapt to unpredictable and changing in market conditions.
