Investors who overreact to US vs North Korea ‘war talks’ could risk significant portfolio damage
Investors who get ‘spooked’ by the possibility of a looming war between North Korea and the United States of America should not be tempted to make rash portfolio changes due to this news. It is likely to do more harm to their long-term performance than if investors opt to ride out the pending storm. It is more important to spend time and attention on portfolio construction to ensure it can withstand known and unknown shocks. “It is understandable that investors become concerned when they see news suggesting the world may be facing another war, but a panic reaction can be extremely detrimental to long-term savings,” says Clive Eggers, Head of GTC’s Investment Analytics team. Market volatility increased sharply following a ‘war of words’ between the US and North Korea in recent weeks, raising fears of a nuclear war. This is... Read More
