Volatility is back. Are you prepared?

Learn why being invested still makes sense and what you can do to help protect your portfolio

10 May 2018

Questions you can ask your UBS Financial Advisor

  • Why should I stay actively invested when markets are becoming so volatile?
  • What can I do to manage risk more carefully in my portfolio in this new environment?
  • Are there steps I can take to help protect my portfolio while still capturing opportunities for return? 

The year 2018 has seen the return of volatility.

Concerns about the end of the market cycle are mounting amid higher inflation, rising U.S. interest rates and the end of quantitative easing. A trade dispute between the U.S. and China threatens global growth. And other threats lurk.

Yet the presence of heightened risk does not mean investing has become unattractive, nor that investors should expect negative returns. Global growth is still good. Earnings growth is strong. And equity market valuations are still appealing relative to cash and fixed income. In short, being invested is likely to pay off in both the short and long term.

Find out why—and how you can prepare for the new environment—in the new UBS Chief Investment Office (CIO) white paper, Volatility is back. Are you prepared? (PDF, 594 KB) Our leading global strategists discuss how investors can remain invested while managing risk more carefully. 

CIO believes that investors in well-diversified portfolios are well-prepared for volatility. Yet many others are not—relying too heavily on simply being invested in the markets, not managing equity downside risks appropriately, concentrated in the familiar, overly focused on yield, neglecting risks, and not looking beyond the current noise.

Read the CIO white paper (PDF, 594 KB) to learn more about the steps CIO recommends investors consider taking at this stage of the cycle, including:

  • Reducing portfolio risks from equity drawdowns
  • Looking beyond the familiar to diversify sector and country risks
  • Reconsidering sources of yield aside from risky credit and excess foreign exchange risk
  • Investing longer-term in assets that can deliver returns throughout and beyond the current cycle

Are you prepared for the changing investment landscape? Together we can find an answer. Connect with your UBS Financial Advisor or find one.

Gain more perspective

Volatility has returned to financial markets. Gain further insight on what that means for investors in a UBS On-Air interview with Jason Draho, Head of Tactical Asset Allocation Americas, UBS Chief Investment Office


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