Portfolio Review: Are you positioned properly?
posted in Market Volatility |How did your portfolio fare during the recent 400 point plunge in the Dow? If you were uncomfortable with this loss, it may be time to reposition your portfolio to better withstand market volatility.
The recent market plunge seemed to come out of nowhere: was it triggered by a sell-off overseas, mortgage defaults, impending recession, or something else? Whatever the reason, the speed at which the market declined caught many by surprise. The 416 point decline on February 27th was the 7th largest point drop ever, but was only a 3.3% decline, not even making the top 20 percent market declines.
Money managers caution that some market sectors are precariously perched, and could be in for further declines. Sectors of concern include large-cap financials, mining and commodity stocks, and emerging market equities. Many of these groups of companies could be hard hit if capital markets tighten or economic conditions worsen.
In this environment, it pays to be fully diversified, and to have a portfolio that matches your tolerance for risk. If recent market drops left you uncomfortable, you should consider repositioning to a more conservative portfolio, with more limited downside volatility. Caprock Analytics makes these choices easier, providing a range of optimized, fully diversified portfolios. The Caprock portfolios include conservative, moderate, and aggressive mixes, along with optimized versions of standard portfolios. These portfolios have proven to minimize capital drawdowns while delivering market-beating returns.
Consider these portfolios if you are searching for controlled volatility with market beating returns. These portfolios, available by subscription only, can put you back in control of your investments, by matching you with a portfolio that achieves your investment objectives.