How to rebalance your portfolio to handle turbulent times
Investors who stick to a predetermined ratio of growth assets to defensives have a better chance of taking profits and buying value when the herd is paralysed by indecision.
Investors with long-term objectives are told they should be immune to market gyrations, but slow, grinding declines in value have been harsh tests of character – and sharp, vertiginous drops are just terrifying.
The Australian and US share markets have lost 7 per cent and 18 per cent respectively since January 1 – and the spectre of inflation has cast a shadow over the next 12 months at least. It’s almost impossible to know what to do next.
Jeremy ChunnContributorJeremy Chunn writes on personal finance specialising in financial services, specialist investments, fixed income. Connect with Jeremy on Twitter.
