The storm is the same for everyone - the ships differ!
Since the beginning of the year, the storm warnings on the financial markets have been increasing. In June, many investment portfolios continued to suffer. On average, the valuations of investment portfolios have lost another 4-8 percentage points in value and are now very often in double-digit negative territory. Unfortunately, no actual safe haven is within reach - but at least ensure you are not stuck on a barge which is not fit for purpose.
Have you already looked at your bank statement? If not, now would certainly be a good time to do so. Because the developments on the financial markets are putting investment portfolios to the test right now. Due to the further deterioration of the economic outlook, the financial markets have rated securities for their stability in July. This led in part to large valuation losses. And the differences are striking.
In case of a loss of more than 14% this year: by all means demand a risk analysis
While well-equipped investment portfolios - or to stay with the metaphor, ships - can weather the storm quite well, some are already in very deep water. On the one hand, this observation refers to the returns. On the other hand, some of the risk characteristics are alarming and do not bode well for a possible worsening of the storm. The current rule of thumb is: if losses exceed 14%, a risk analysis should be requested.
Weathering the storm safely
There are many reasons for the current storm. Accordingly, you should assume that this storm will continue for a while. Unfortunately, it is not easy to find a shelter. The focus should rather be on ensuring that your investment portfolios come through the storm intact. In concrete terms, this means: avoiding liquidity bottlenecks, not underestimating default risks, checking diversification and not underestimating the illiquidity of structures such as funds and ETFs. Because the storm itself is the same for everyone - the difference lies in how well your ship and crew withstand it.
Our experts will be happy to provide you with further information and answer any questions you may have.