How do you get downside protection?
This toolkit can help with your investment risk management. We’ll keep you informed of the latest market events, share how we've been managing downside risk in our portfolios, and equip you with important truths to hold onto during unavoidable market volatility.
Insights for times of market volatility
Market viewsWhat goes up must come down, right? We know navigating through turbulent markets can be trying at best. Our investment experts help you by sharing their insights and strategies among uncertain times.
How we manage riskWatch a video and read select blog posts describing how we help investors manage downside risk with diversification, dynamic asset allocation, and effective implementation capabilities.
Important truthsThis collection of educational articles, videos and blog posts shines a light on the importance of staying invested during market turmoil, the difficulties in timing market exit and re-entry amid volatility, and using risk tolerance to make clear decisions.
What is risk management?
When it comes to investing, risk management is the active mitigation of uncertainty that surrounds all investment opportunities. Investing is inherently risky. At Russell Investments, we do not seek to avoid risk, but rather work to ensure that the right risks are taken, with the highest likelihood of compensation. We work to ensure exposure to uncompensated risk is minimized.
Investing in volatile times
At Russell Investments, we help investors manage downside risk in three ways: by diversifying sources of returns, by using a robust dynamic asset allocation process to guide tactical positioning, and by seeking effective implementation capabilities. We have been anticipating a low-return, high-volatility environment for the last 2-3 years. Accordingly, we have been dynamically adjusting our portfolio positioning to manage downside risk.
Bulls vs. bears
We believe that possessing the discipline to stay invested through the ups and downs of the market gives a diversified portfolio the best probability of meeting its goals.
Thinking about market timing
The recent increase in market volatility has appeared to stir up questions about moving out of the market for the safety of cash. Check out these key considerations before moving to cash.
Investing in today’s markets without a crystal ball
It’s no secret: Today’s investing landscape is challenging. What specific ways can potentially help investors navigate today’s murky waters?
Emerging markets: Tumbling, or just stumbling?
Emerging markets have struggled in 2018, with the currency crisis in Turkey adding to the list of recent woes. What might this spell for the road ahead?
Are recession risks increasing in the U.S.?
The U.S. economy has been growing for nine straight years—but current macroeconomic indicators hint that the good times may be coming to an end as soon as next year.
Why downside protection may matter more than upside growth
The global macroeconomics and geopolitical outlook remains uncertain, suggesting that an environment of low rate, low growth, and high valuations may linger. Against this backdrop, preserving capital may be more important than seeking the growth of capital, because, in the investing world, losing less means requiring less to bounce back.
How we position our portfolios to help against downside risk
Complacency has no place in portfolio management. Once a portfolio or fund is built, it needs to be dynamically managed to not only take advantage of potential upside opportunities, but avoid as much downside as possible. At Russell Investments, our global portfolio managers direct multi-asset portfolios in real-time, all the time.
Multi-asset investing: the importance of seeking to manage the downside
Big losses are hard to recover from. That’s why a multi-asset approach that also emphasizes managing downside risk – the range of techniques designed to reduce the probability and magnitude of losses in a portfolio – is so valuable.
Important market volatility truths
Why a dynamic multi-asset approach matters during volatile markets
We believe nimbleness and dynamism is most beneficial during periods of market dislocation, where the elapsed time between idea and implementation is critical. As the February 5 sell-off demonstrated, markets don't work on quarterly cycles.
The impact of staying invested during market turmoil
Staying the course during market volatility is often difficult for many investors. Some choose to move to cash investments, while others try to time the market. Unfortunately, these investors are often buying high and selling low—and miss the rallies that follow the challenging periods.
Using risk tolerance to make clear decisions
One of the factors to consider when constructing an investment portfolio is how you balance the potential for risk with reward. It’s just as important to be aware of how your portfolio is constructed to not lose money as it is to be aware of how it makes money.
Market timing amid volatility - tricky as ever
Correctly timing when to get out of – and back into – the market is tricky. Get out right after a ‘worst’ day, and one might not get back in soon enough to catch a ‘best’ day. Such mistiming can have a significant impact on potential portfolio returns.
Weekly market update on global investment news in a quick five-minute video format featuring some of our top investment professionals.
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Russell Investments’ comprehensive quarterly report setting out our strategists’ views and analysis on global investment markets and economies.
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