POSITIONING FOR MARKET VOLATILITY

Buttons outside the jar

Trade tensions have triggered a selloff in stock markets around the world. We see market volatility persisting for some time and reduce risk-taking as a result. We expect tariffs to lower economic growth and boost inflation globally.

 

We look to bolster portfolio resilience against these known risks, but also against unknown risks - black swan events that are unanticipated by investors, such as the outbreak of the Covid-19 pandemic, large-scale cyber or terrorist outlooks, technology outages and natural disasters, among others.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

This material is not intended to be relied upon as a forecast, research, or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.

BUILDING RESILIENT PORTFOLIOS

Investors may be able to manage downside risk through varied, adverse conditions by building all-weather resilience into their portfolios. Resilient portfolios take measured risk, accounting for uncertainty, hold diverse exposures, and adapt to changing market conditions over the long term. Below, we outline some exposures that we consider important components of a resilient portfolio.

NAVIGATE TODAY'S MARKET

References to specific investments are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such investments.

References to specific investments are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such investments.

References to specific investments are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such investments.
Black and white photo of a man on a cliff facing the open sea, with the white foam of a wave crashing against the rocks.

POSITIONING FOR NEAR-TERM VOLATILITY

Amid heightened uncertainty, we look at how to position across asset classes.

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