Volatile markets are a stress test of investment strategies

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 63%

Sverige Nyheter Nyheter

Investors should be reassured that the buffers in their retirement savings have supported performance during the market meltdown

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.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 12. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Market data — May 18 2020Market data including bonds, unit trusts and fuel prices
Källa: BDliveSA - 🏆 12. / 63 Läs mer »

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
Källa: eNCA - 🏆 49. / 51 Läs mer »

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
Källa: BDliveSA - 🏆 12. / 63 Läs mer »