The events of recent weeks have left marks in most investors’ portfolios. The rapid pace of this market volatility has rarely been seen before; but it is certainly not the first market correction for many either. Many investors still remember the financial crisis, the tech bubble and the dramatic events of 9/11.
During all these periods, one fundamental approach has been important, which often gets forgotten in a bull market, and that is possessing a well-diversified portfolio. High quality, diverse portfolios can successfully protect wealth management clients from losses, greater than the liquid markets.
In which case, how is it possible that so-called ‘safe havens’, such as gold and government bonds, have also been adversely affected by the global market crash?