Market Volatility tied to Emerging Markets While it is not clear what will happen next in the Ukraine and if the crisis will escalate into a larger scale international event, it is clear that some investors are nervous. Recent market volatility, which may prove to be shorter term in nature than some currently fear and is the second significant crisis in the Emerging Markets already this year, should serve as a reminder of the importance of asset allocation in a properly constructed growth portfolio. Asset allocation remains of the upmost importance, from our point of view, and should always be constructed in accordance with one’s investment objectives, investment time frame and tolerance for risk. While past performance cannot guarantee future results and asset allocation cannot ensure a profit or protect against a loss, applying a historical perspective and maintaining an appropriate strategic asset allocation can help provide comfort and direction to investors during periods of great volatility – whether these periods are short term or long term. Investors would be wise to look for areas of low correlation in non-traditional asset classes and sectors in an effort to not only provide for additional diversification but also to help find additional pockets of risk-adjusted growth potential in 2014. Alternative asset classes such as Precious Metals, Gold and Silver, Agricultural, & Energy commodities, and Real Estate have proven top provide a viable hedge
Posted on: Tue, 18 Mar 2014 13:00:00 +0000
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