Volatile markets are a stress test of investment strategies

While the dislocation in financial markets is unnerving, it certainly is a good stress test of investment strategies. Evidence that your portfolio is working as expected is far more valuable than hearing that none of this volatility will matter in the long run.

Does derisking your portfolio work? No doubt the thought has crossed your mind: what if something like this happens just before I retire? Fortunately, it is not just about the JSE. Most retirement portfolios hold a variety of investments, which all react differently to the news cycle. A typical balanced high-equity portfolio will invest 25% to 30% offshore, mainly in foreign shares, providing exposure to different currencies, economies and sectors. Amazon, Alphabet , Apple and Netflix may not be listed in SA, but you probably own a piece of these companies anyway, through your fund’s offshore allocation.

المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Market data — May 18 2020Market data including bonds, unit trusts and fuel prices
مصدر: BDliveSA - 🏆 12. / 63 اقرأ أكثر »

Uber says cutting 3,000 jobs and trimming investmentUber is laying off about 3,000 people and stopping some investments unrelated to its core ride-share and delivery businesses. Just 3 000? 🙄 😥😥😥 To other people it's lovely but other people it's painful
مصدر: eNCA - 🏆 49. / 51 اقرأ أكثر »

EY research shows US better investment for renewables than ChinaThe global clean-energy sector is expected to bounce back quickly despite the coronavirus pandemic, according to the report
مصدر: BDliveSA - 🏆 12. / 63 اقرأ أكثر »