It’s 2021 and what is in store this year ? How should you position your portfolio ?
Hi and welcome to this Arch Capital update!
Well, it’s February 1 and 2021 is well underway and here we go again. Who knows what’s in store this year. Perhaps we’ve got more certainty even than this time last year, but you just never know.
So what can we do?
We can only control what we can control. A big question mark this year is with interest rates so low around the world is with interest rates so low around the world and a lot of portfolios having a lot of bonds and cash do we take more risk and put more money into growth and equities and property, or do we leave more money in fixed interest and cash because we are uncertain.
This is the current discussion around that right mix. We know we’ve got to have some money in safe assets and cash, but do we move a little bit more to taking a long-term view because the income is higher in shares and property and the long-term returns are likely to be better.
That however is a case-by-case conversation.
Other than that, let’s just hope that this year is a better year than last year for all of us. But again, no matter what comes we are here to help you through whatever happens and look forward to talking with you and meeting with you throughout 2021