How to protect your portfolio

Protect your portfolio

2 Responses

  1. An excellent post, well worth reading. Thank you. Having been an adviser for many years and most recently an academic teaching undergraduate advisers, I could safely say that 99.999% of all private investors would not have addressed any of the issue’s you have. I could also say (rather cynically) that 99% of advisers would probably have failed to address any of the points you raised for their client’s benefit.

    The regular rebalancing of portfolio weightings to the original risk intentions is to me probably the best overall safety valve a portfolio could have. Often overlooked, and usually, because equities are booming, the greed of investors clouds their judgment until too late.

    Interestingly you mentioned negative correlation in addition to diversification. It seems to me that many investors miss this point in favor of a spread across markets and sectors. With the introduction of Robo advice, index ETF ‘s seem to have become ‘de rigueur’ as regards the ultimate balanced portfolio. No doubt Millenials will be learning a valuable lesson about index investing during the next prolonged bear market!

    I certainly enjoyed your post. Adrian

    • Mike Rawson Mike Rawson says:

      Thanks for the kind words, Adrian.

      As usual, the proof of the pudding is in the eating. It will take me a few months to work through all the protection options, so I just hope that my nightmare scenarios don’t come to fruition in the meantime.

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How to protect your portfolio

by Mike Rawson time to read: 6 min
More in Active investing, Mike's portfolio
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