A few weeks ago, we shared that we had activated our portfolio hedges in response to the inflation-driven market correction which helped us perform better than the market last month, losing only -0.97% when the S&P 500 index lost more than 4%.
However, this month has seen even more volatility in the markets as the Russian war against Ukraine continues and economic sanctions against Russia drove oil prices over $130 per barrel.
Given continued market volatility, we have stepped up our hedges to 10% of the portfolio. We are also holding a higher cash position than before to take advantage of opportunities.
While we expect more volatility, we also know that more long-term opportunities come from periods of turmoil like this. And for users who cannot accommodate the elevated risks in the stock markets now, we recommend a shift to real estate or fixed income portfolios.
As always, Rise will navigate the investment landscape for you, so you don’t need to worry about doing that yourself.