Global stocks have been in turmoil the past weeks. With the S&P 500 now down more than 30% from its February 19 high, investor sentiment has changed from near-euphoria about the prospects of the US economy to widespread panic and anxiety about a possible prolonged downturn.
Many portfolios have been hit hard by the swift and unexpected market drop. Recovery of those losses could take a long time: A portfolio that loses 40% of its value in the current coronavirus crisis will require a 66.7% return over the next one year just to break even.
The right downside protection strategies can shield investors from significant losses, preserving the strength of their portfolios and positioning them to capture the upside as the market makes its eventual recovery.
Syfe portfolios across all risk categories are designed with this in mind. In this period of unprecedented volatility, our portfolios have remained resilient, with