NAVIGATING VOLATILITY WITH A
SOUND FINANCIAL PLAN
‣ Risky to make all-or-none decisions with portfolios
‣ Adjust portfolios to the changing risks and rewards in asset classes
and companies in a patient and disciplined manner
‣ Consider portfolio diversifiers like liquid alternatives, investment
grade fixed income and absolute return fixed income funds - all of
which would be expected to have performed better on a relative
basis during market stress
‣ Allows for an increase in stocks to be funded from a part of the
portfolio that was less impaired by the market decline
‣ Allows for portfolio withdrawals to be funded without selling good
assets at a temporarily low price
14