Rare, unexpected events – known as Black Swans can have severe consequences in share markets. The chart attached here compares the COVID-19 reaction with other historical events showing their downturn and length of recovery.
4 Important features of our client’s portfolios that reduce the impact of such events include;
- Defensive/Growth allocation
2. Asset allocation
3. Diversification within asset classes
4. Periodic rebalancing
If you have any concerns about the impact of this most recent Black Swan event, please contact us.