How To Manage Your Portfolio During Turbulent Times

About This Episode

“A portfolio is like a bar of soap. The more you handle it, the smaller it gets.”  – Darcy Howe

Markets around the world are turbulent at the moment as inflation and geopolitical conflicts have many investors on edge.

It’s human nature to want to take action in the face of instability.

So what can you do to secure your future? Should you change your portfolio strategy? Are there new opportunities to take advantage of? Is it better to stay the course?

In this episode, Marcelo and Keith talk about how to manage money during turbulent times. We explore the research around the performance of tactical asset allocation strategies, why these “opportunity funds” are appealing to many investors, how balanced funds perform compared to tactical allocation, key strategies you can use to weather the storm of volatile markets, and so much more!

Thank you for listening!

Key Topics:

• Introducing today’s topic and the four themes we’ll be covering (0:48)
• Why many investors might be wondering if it’s time to adjust their portfolio (1:56)
• What are tactical asset allocation strategies? (3:39)
• Testing our hypothesis about the effectiveness of moving money around (6:54)
• Tactical allocation versus balanced fund returns over the last 20 years (8:04)
• Adjusting for survivorship bias amongst tactical allocation funds (10:16)
• How portfolio structure trumps trading (13:28)
• Why outperforming the market consistently is highly unlikely (15:01)
• Market timing and the massive impact it has on your portfolio (17:36)
• The long-term value of consistency (21:44)
• Diminishing returns from tactical allocation (23:15)
• And much more!