Portfolio Considerations: Global Upheaval | Adviser Investments

Portfolio Considerations During Global Upheaval

We often hear from clients who want to know how their hard-earned investment gains will withstand economic crises in the U.S. and around the world. Equity Research Analyst Kate Austin discussed this topic in our recent quarterly webinar*: 2020 Conflicts—Impeachment, Tariffs & Global Dysfunction.

Please enjoy the excerpt below and click here for the full webinar replay to hear more.  

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Kate Austin: I like to say, when there’s stress in the stock market, think about what people are going to continue use no matter what. So consumer staples tend to be a good defensive sector. Think household goods: You’re still going to have to do your laundry, unfortunately. And health care is another one of these defensive sectors that we like, and utilities, because even if you’re sick, you’re still going to have to go to the doctor and no one’s turning their lights off all the time. Let’s be honest.

Kate Austin: Even when times aren’t good, people still use gas, electricity, paper towels, things like that. So those are some good defensive sectors. But like I said before, the best thing to do is have a diversified portfolio. Each area of the market does not outperform or underperform consistently over a long investment period. So that’s why we tend to have a basket-like approach to all asset classes.

Kate Austin: If you’re feeling a little bit nervous about your equity allocation, it would be a great time for you to talk to your financial adviser about changes you may want to make so you can sleep better at night. Because that’s really what we care about.

Click here for a replay of 2020 Conflicts—Impeachment, Tariffs & Global Dysfunction. Please contact us at (800) 492-6868 to learn more about comprehensive wealth management solutions.


*Webinar recorded after the market closed on January 23, 2020.

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