3. Diversify portfolios.
Diversifying client portfolios — looking at different asset types, market cap sizes and regions — is important in a rocky market. “When things are as unpredictable as they are now … your best move is to diversify your investments across as many sources of risk and return as you can,” Kevin Grogan, managing director of investment strategy, said.
Buckingham, for example, has long believed in having an internationally diversified portfolio, he noted. While there’s significant risk in overseas stocks, given the war in Ukraine and COVID, the market has accounted for that to some degree, Grogan said, citing lower price-to-earnings ratios for global stocks compared with U.S. equities.
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