Dubai – Mubasher: Dubai-based Holborn Assets Limited on Sunday revealed how investors could protect their investment portfolio amid market’s current volatility, according to a press release.
Robust investment portfolio invested in various locations and industries across different major asset classes enables clients to reap benefits during growth’s periods, such as 2017, and alleviate risks caused by downturns, senior Partner at Holborn Assets Stefan Terry said.
He noted that 2017 was “a very stable year” for most markets across the world, which have been shown in investors’ strong earnings where a return above 20% was common.
Most of the financial advisory firm’s clients are wondering about the impact of market volatility and downturns on their investments, Terry added.
Some analysts predict a downturn in the market, while many others forecast the opposite, he indicated.
Terry highlighted that mid- to long-term investments are not a “get rich quick scheme”, but a managed portfolios that investors follow to make strong and strong healthy returns.
However, he attributed the volatile return of some clients to the widespread uncertainty caused by media speculation regarding the current market high will result in a downturn, possible interest rate hikes, Brexit negotiation implications, and the uncertainty over Donald Trump’s actions.
Investments shall be diversified to ensure that any risk will be minimised when the market is volatile, he said.
He remarked that markets are likely to work in cycles of which its level of return shall be checked at over a three- to five-year period, instead of a year or less.
“In terms of volatility, your adviser should be able to give you very sound evidence that your investments have been diversified that you do not have anything to worry about. No adviser should guarantee that you will never lose money - and if they do, you should question it,” he said.
“However, as the markets tend to go in cycles you should be generating good returns over longer periods of time and it’s important to look at the overall picture rather than just the current period,” he added.
