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Advisors reimagine portfolio construction in a post-coronavirus world

johnNjohnN
edited April 2020 in Other Investing
https://www.financial-planning.com/news/financial-advisors-reassess-portfolios-in-the-wake-of-coronavirus-crisis


/What will portfolio construction look like when the threat of the coronavirus has diminished? While investment fundamentals such as asset allocation, diversification, rebalancing and risk management will remain pillars of financial advice, other areas of building portfolios are set to be reassessed in a changed economic landscape, according to financial advisors and investment professionals./


Advisors approaches to portfolio constructions perhaps starting with hy bond/cash as potential building blocks

Comments

  • davidrmorandavidrmoran
    why are you posting this?
  • Old_JoeOld_Joe
    And just when I thought that everything was OK. Good grief!
  • johnNjohnN
    edited April 2020
    ..
  • WABACWABAC
    From the link:
    “There is an excellent opportunity to gain additional yield if investors are willing to give up liquidity,” Dow says.
    Now they tell us. But seriously . . . didn't people generally know this?

    I guess not.
    The era of investor complacency is over, Morningstar portfolio strategist Amy Arnott agrees.

    “When everything goes so well for so long, it’s tempting to think equity values can only go up,” Arnott says. “There will now be more awareness of the importance of risk and the potential for unexpected Black Swan events. And there will be more emphasis on quality and liquidity.”
    Thanks for that M* Amy. So now we're going to learn the lessons we could have learned in 2008 or 2000 if we had really paid attention?

    I have a feeling the beatings will continue until edumacation improves.

  • MikeMMikeM
    why are you posting this?
    What am I missing? I thought the article made some good points about bonds, cash and risk during a major black swan event like this. Always good to keep repeating I think.
  • beebee
    @JohnN...thanks. Keep posting. Seems timely and appropriate.
  • WABACWABAC
    edited April 2020
    I was surprised to see the content on a web-site geared to financial advisors. Shouldn't they know this stuff already?

    I felt like showing it to my wife. But she has already conceded that there's no good point in paying somebody to tell you about, e.g., quality and liquidity.

    And the way the market is shooting up makes me think there is still no end of complacency about current valuations.
  • johnNjohnN
    edited April 2020
    Sorry I posted another junk article before changes made...typo...Dr David and Old-_Joe's minds and fingers were extremely fast compared to mine..
    Kind regards
    Thx
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