Wild swings in sentiment have driven brutal spikes in volatility over the last year and are likely to continue doing so in the context of substantial macroeconomic uncertainty. How can investors gain exposure to the stocks that outperform in these conditions while avoiding short-term drawdowns?
Our answer is time-tested: diversification reinforced by a focus on strong stock fundamentals.
As market volatility has risen, the frequency and severity of rotations
has also increased
The areas of the market impacted most vary with each rotation, making
it impossible to forecast the outlook for regions, sectors and stocks
Without such prescience, diversification is essential in defending a
portfolio against these rotations
This, combined with a dynamic approach to risk and an emphasis on
strong fundamentals, enables us to weather volatility and capture upside