Recession looming? – protecting your portfolio

15 Apr 2020

Savings With the unstable global economy balancing on the edge of a precipice of recession, many investors are concerned about what to do with their portfolios. There are many options available to investors, and often panic buying or selling could be harmful to your investment portfolio in the long run. It is important to consider the long-term effects on a portfolio before making hasty decisions.

What can you do to protect your portfolio?

• The most important is to ensure that your portfolio is diversified across multiple asset classes. Some asset classes will be more impacted than others. By having a diversified portfolio, you are spreading the risk to reduce the overall loss in returns.
• Go international – diversifying your portfolio into international markets will help spread your risk. Not all global markets are affected by an economic, political or health crisis. e.g. a political crisis in Spain might not affect emerging markets in Asia.
• Reducing your debt could allow for much needed cash flow during tough economic conditions e.g. redundancy or less working hours etc. 
• Having that rainy-day fund could prevent you from having to dig into your credit card or take out loans for cash flow.

It is always advisable to chat to your deVere Acuma adviser before making any investment decisions. They will help you make an informed decision about global diversification. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.