Ghost Stories #58: Diversification - the way to survive market chaos
Description
With the markets in disarray in the aftermath of tariffs, it looks like the theme this year is more around risk management in a bear market rather than which growth stocks to buy. Of course, this can change, as markets are volatile and are driven by a number of factors including geopolitics.
This volatility is exactly why diversification is so important. The risk of "diworsification" is ever-present in the strategic asset allocation decision, which is why it ends up being even more important than stock picking.
A quantitative approach to strategic asset allocation is baked into the Satrix Balanced Index Fund and related products. Kingsley Williams, Chief Investment Officer of Satrix, joined me to talk through the key concepts in diversification and the usefulness of a balanced fund.
This podcast was first published here.
For more information, visit https://satrix.co.za/products
Satrix Investments Pty Limited and Satrix Managers RF Pty Limited are authorised financial services providers. Nothing you have heard in this podcast should be construed as advice. Please do your own research and visit the Satrix website for more information on all their ETF products.
United States
