Stress testing of portfolios has taken on greater importance amid COVID-19 crisis Helen Burnett-Nichols Published April 6, 2021
Recent investor sentiment surveys have found that 80 per cent of global investors feared a further market decline right after the COVID-19 pandemic first arrived while 70 per cent of Canadians said it’s hard to know what to do with their investments in this environment.
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Before the COVID-19 pandemic, few if any financial advisors and their clients would’ve had such a black swan event on a list of circumstances most likely to cause profound volatility in financial markets and investments. With many investors now anxious about what shock may come next, advisors are focusing their communication around the resiliency with which portfolios have been built to withstand the effects of possible scenarios.