How To Protect Your Portfolio In A Time Of War

Stéphane Renevier

10 months ago3:58 mins

How To Protect Your Portfolio In A Time Of War

As if markets weren’t already struggling enough with the threat of higher inflation and rising interest rates, now war has broken out between Russia and Ukraine. So if you’re one of the many investors casting a wary eye toward this geopolitical crisis, here’s how to reduce the risk in your portfolio.

Build a cash buffer

The simplest and most effective way to reduce risk in your portfolio is to sell some of your assets and build a cash buffer. That’ll not only protect your financial capital if things get worse, it’ll also help preserve your emotional capital. In other words, it’ll allow you to more clearly see the opportunities that will eventually appear. It’s difficult to see the case for buying stocks after you’ve suffered a 60% loss, after all.

Once you have this buffer in place,

Limited introductory offer

Subscribe Now 50% Off

Get full access to daily stories, insights, deep-dives, interviews, podcasts, and more

Have an account? Log in