Retirement Portfolio Resilience Perspective
Primary Pillar: Risk Pricing Discipline
Supporting Pillars: Retirement Portfolio Construction • Resilience Across Market Environments
This early edition of Gyrations introduces a structured framework for assessing investment risk through geopolitical developments, macro-economic conditions, market valuations and the pricing of risk as inputs into portfolio construction.
Viewed through today's Retirement Portfolio Resilience Framework, the enduring principle is that resilient portfolios are constructed through disciplined capital allocation informed by observable market conditions rather than reliance on market prediction alone. While the market commentary reflects the environment in which the publication was written, the underlying philosophy of preparing portfolios for uncertainty and reducing dependence on favourable market conditions remains central to the evolution of Retirement Portfolio Resilience.
This publication forms part of Gyrostat's historical research archive documenting the evolution of the Retirement Portfolio Resilience Framework.
Global debt as a percentage of GDP is at all time highs and the stock market has been rising for over 7 ½ years without a significant correction. Stock market ‘bear markets’ since 1929 have occurred every 4 ½ - 5 ½ years and have ranged for 25% to 90%. Geopolitical developments are resulting in changes to macro-economic policies.
The Gyrations risk model consider the implications of geopolitical, macro-economic, and company valuations on investor risk.
Our report details the investment landscape (in pictures) with dates of key upcoming data releases.
These are dangerous times for traditional investment approaches. Investors can approach these markets with confidence with 'risk managed' equity funds.
