What is market volatility and why does it matter for investors
If you’ve ever felt uneasy during a market swing or nervous as your portfolio dipped, you’ve already experienced one of the most important — and frequently...
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What is market volatility and why does it matter for investors
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How to protect your investments in troubled times
Periods of market turmoil and economic uncertainty are an inevitable part of the investment journey. During such times, maintaining a calm, strategic mindset is essential... -
How to use a market selloff to reassess your portfolio strategy
When markets fall sharply, it’s natural to feel unsettled. Watching your portfolio decline can trigger strong emotional responses — and with those emotions often comes the... -
How to re-evaluate your portfolio during a market sell off
Market downturns often stir anxiety — but they can also offer valuable moments for reflection. When equity markets fall, it’s not always a sign to exit...
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Market News & Analysis
In fast-moving markets, staying informed is essential. Here we feature timely insights and expert commentary to help you make sense of timely global developments — and what they could mean for your investments.
How to navigate market volatility with a diversified portfolio
Volatility is a natural part of investing. While it may feel uncomfortable, it doesn’t have to derail your long-term financial goals. Whether prompted by economic data, company news, or...Strategies against market volatility: Why diversification works best
Market volatility is unpredictable, and this reality about investing can challenge even the most experienced investors. Sharp changes in asset prices may create uncertainty and lead to impulsive decisions...Diversification risks: 6 proven strategies for effective risk management
Diversification is an essential strategy to reduce risk when investing, by spreading investments across different asset classes, industries, geographic regions, and time horizons...Investing internationally: Why is geographical diversification important?
Along with diversifying across asset classes, stock sectors, and individual companies, investing internationally is a basic principle of investment diversification. Geographical...How to build a diversified portfolio in 6 steps
Concentrating all your investments in one sector or asset class can expose your portfolio to significant risk. That’s because market assets often move together - especially similar assets...Diversification strategy: From Harry Markowitz to today's best practices
Building a resilient portfolio requires careful planning, and diversification is one of the most important parts of any investment strategy. Pioneered as part of the ‘modern portfolio...What are smart beta strategies? A guide to modern diversification
Traditional index funds often rely on market capitalisation, giving greater weight to larger companies. While this approach provides simplicity, it may lead to over-concentration and limited diversification...Index funds vs actively managed funds: Which is better for you?
The choice between index funds and actively managed funds remains an important consideration for investors. Both options can be highly effective, and...How correlation impacts diversification
Investing involves balancing growth opportunities with the inherent risks of financial markets. One of the most effective strategies to achieve this balance is diversification, which helps reduce the impact of any single...Core-satellite approach: A smarter way to diversify your investments
Building a well-diversified investment portfolio requires balancing stability with growth. The core-satellite approach offers a practical way to achieve this balance by combining steady, low-cost...
Frequently Asked Questions
Consider reviewing your asset allocation. Diversification across different asset classes - stocks, ETFs, bonds, commodities, and cash - can help manage volatility. If short-term losses are causing stress, having some cash or defensive assets may provide balance.
Every downturn is different, but historically, bear markets (a decline of 20% or more) last an average of 9-16 months. Corrections (declines of 10-20%) tend to be shorter. Markets tend to recover over time, but patience is key. But always remember, past performance is not guarantee of future performance.
A downturn doesn’t necessarily signal a crisis but is often part of the normal market cycle. Selling in a downturn can lock in losses and prevent you from benefiting from a future recovery. If your investment thesis remains intact and you have a long-term horizon, staying invested is often a wise strategy. However, reassessing your portfolio to ensure it aligns with your risk tolerance is always a good practice.
Market declines often present opportunities to buy quality assets at a discount. Look for strong companies with solid fundamentals, dividend stocks for income stability, or sectors that may be more resilient, such as healthcare and consumer staples.
If you anticipate needing funds soon, it may be wise to keep an emergency reserve in cash or short-term fixed-income investments. Selling stocks in a downturn may not be ideal, so having a cash cushion can help you ride out volatility.
