Investment performance is tricky in bear markets, particularly when bonds, equities and property are underperforming simultaneously. In major downturns, the investment focus can quickly shift from return on capital to the return of capital. Getting good advice and making meaningful changes to your portfolio are crucial in preventing major drawdowns in your wealth.

Intuitively, it makes sense to adjust your position over the business cycle. The idea that volatility and drawdowns are irrelevant is simply lazy portfolio management, particularly if your mantra is capital preservation. Never forget that it takes a bigger percentage increase to recover lost capital (a 25 per cent drawdown requires a gain of 33 per cent to recoup your original capital). It does not matter if you are a private investor running your own investment portfolio or a professional investor managing significant capital for others – you need to adjust your portfolio across the cycle as the landscape evolves.