- With increased uncertainty and volatility across the global financial markets, investors are forced to find ways to adapt, and most of the time, the best approach to limit downsides while still taking advantage of new opportunities is via a diversified exposure.
- TRADE.com is one of the brokerage houses that spotted this need from an early stage and it is now offering Diversified Model Portfolios, as part of its Asset Management Service.
Diversification directly correlated with market uncertainty
Conservative and risk-averse investors are using diversification to broaden their market exposure, especially when uncertainty is on the rise. Even though the “putting all eggs in one basket” approach is not recommended even when the valuations are performing above average, the demand for diversified instruments has been on the rise in 2020, due to numerous factors.
The COVID-19 pandemic, its economic implications, unprecedented monetary and fiscal interventions had influenced stocks, bonds, currencies, and other financial assets meaningfully, taking by surprise even many large investment firms.
Faced with demand even from the retail investors’ side, TRADE.com, one of the leading European multi-asset brokerages, had developed a Diversified Model Portfolio, to provide an affordable yet verified alternative for clients that put diversification above anything else.