Portfolio construction is always a popular topic among investors, but as markets become more volatile, the practice of carefully piecing together a jigsaw of investments that weathers both good times and bad is particularly relevant.
This is an update of a note I wrote last November, but after the recent plunge in shares and the associated 10% or so loss in balanced growth superannuation funds through the March quarter, it’s particularly relevant now.
There are several global events and themes on our radar for the remainder of 2019 and moving into 2020. Those who recognise the utility of bonds in a broader investment portfolio should take note of these broader conditions.
One of the most fundamental aspects of investing is the decision between active and passive approaches to portfolio management. Each has their own objective and is suited to a certain circumstances, in particular the prevailing monetary conditions.