When the going gets tough, it can be tempting to run to cash but, argues Trevor Greetham, volatility cuts both ways and there is good money to be made from going against the herd from time to time
Last year marked the start of a new higher volatility regime and this has major implications for portfolio construction. Spreading investments across a broad range of asset classes reduces risk but active tactical asset allocation and volatility management can also play a vital role in reducing losses when markets are turbulent. Concerns over rising US interest rates and trade wars led to some incredible price swings over 2018, capped off with Wall Street experiencing its worst December since 1931. US equities returned to their previous highs over the first few months of 2019 as the F...
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