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Wealth Management Wire
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Don't Ignore The Threat Of Another Market Tantrum

Jeff Knight looks at why market tantrums are the greatest risk management challenge facing investors today - and three ways to help protect your portfolio.

By Jeffrey L. Knight, Global Head of Investment Solutions and Co-Head of Global Asset Allocation

On September 9, following more than 40 trading days where it failed to make a full percentage point move in either direction, the S&P 500 Index dropped by nearly 2.5%. On the same day, the yield on the benchmark 10-year Treasury bond rose from 1.60% to 1.68%, a loss of roughly 0.7% in price terms. Commodities fell by several percentage points. REITs lost almost 4%, and the list goes on. September 9 was a painful day for concentrated and diversified portfolios alike. While the damage was softened, if not reversed, for most asset classes by the end of the month, the pattern of performance that day should be noted, because… Read More …

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