Building a portfolio to weather any storm
If the first quarter of 2018 has taught us anything it’s the importance of diversification. Local and international share markets have been flung around by macro-economic events that are creating large fluctuations which are out of the control of the everyday investor.
The two main risks to equity markets right now are geo-political risks and Monetary Policy. The moves on Twitter, and in real life, by the U.S. President are impossible to predict. Protectionism, tariffs and embargoes are now a genuine threat to global trade and economic prosperity in general.
Combine the above with the U.S. Federal Reserve forecasting rate hikes of approximately 2% within the next 24 months, and equity markets in general are set for further turbulence.
Diversification acts as a natural hedge to this unpredictable and unavoidable volatility in equity markets. A diversified portfolio, in line with your investment goal and timeline, will help smooth out your returns and lower your overall volatility to decrease those sleepless nights.
This is why diversification is high on the agenda for our upcoming InvestSMART Forum. Come along and meet the team including our CEO, Ron Hodge, and of course our analysts at Intelligent Investor and gain simple strategies to build a diversified investment portfolio to weather any storm.
First cab off the rank is Gosford this coming Monday. Click here to see all the towns and cities we will be stopping in to on the way.
We don’t really know what to expect from these regional presentations and we’re hoping for a good crowd. The more people who turn up the more inspired we will be to keep up with them on an ongoing basis! Saying this, please feel free to invite along any friends, family or colleagues you think might be interested. The more the merrier.
We look forward to saying hello in person.
Frequently Asked Questions about this Article…
Diversification is crucial for everyday investors because it acts as a natural hedge against the unpredictable and unavoidable volatility in equity markets. By spreading investments across various asset classes, you can smooth out returns and reduce overall volatility, helping to decrease those sleepless nights caused by market fluctuations.
The main risks to equity markets right now are geo-political risks and changes in Monetary Policy. Unpredictable moves by global leaders, such as the U.S. President, and potential rate hikes by the U.S. Federal Reserve are contributing to market turbulence.
To build a diversified investment portfolio, align your investments with your goals and timeline. Consider spreading your investments across different asset classes and sectors to mitigate risks associated with market volatility. Attending investment forums, like the InvestSMART Forum, can provide you with simple strategies to achieve this.
Geo-political events can significantly impact your investments by causing large fluctuations in share markets. These events, such as protectionism and tariffs, are often unpredictable and can pose threats to global trade and economic prosperity, affecting market stability.
Interest rate hikes, like those forecasted by the U.S. Federal Reserve, can lead to increased market volatility. Higher rates can affect borrowing costs and consumer spending, which in turn can impact company profits and investor sentiment, leading to fluctuations in equity markets.
By attending an InvestSMART Forum, you can meet investment experts, including the CEO Ron Hodge and analysts from Intelligent Investor. You'll gain insights and strategies to build a diversified portfolio that can withstand market volatility, and have the opportunity to ask questions and network with other investors.
Attending regional investment presentations can provide you with valuable insights into building a resilient investment portfolio. These events offer a chance to learn directly from experts, ask questions, and connect with other investors in your area, enhancing your investment knowledge and confidence.
To stay informed about upcoming investment events, such as the InvestSMART Forum, keep an eye on announcements from investment platforms and forums. You can also subscribe to newsletters or follow investment companies on social media to receive updates on events happening in your area.
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