AutoWealth adopts a conservative investment approach via-a-vis other investment managers or robo-advisors. All AutoWealth portfolios feature a material allocation to government bonds for risk management purposes.
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In a severe market crisis like the 1997 Asian Financial Crisis or the 2008 Great Financial Crisis, even the most highly-rated corporate bonds, including those issued by our local banks, lost value.
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Conversely, government bonds appreciate during market crisis. The returns from government bonds can therefore be utilised to buy more stocks while they are extremely cheap (undervalued) in a market crisis. This process is known as portfolio rebalancing, and is one of the benefits of investing through AutoWealth.
AutoWealth adopts a conservative investment approach via-a-vis other investment managers or robo-advisors. All AutoWealth portfolios feature a material allocation to government bonds for risk management purposes.
β
In a severe market crisis like the 1997 Asian Financial Crisis or the 2008 Great Financial Crisis, even the most highly-rated corporate bonds, including those issued by our local banks, lost value.
β
Conversely, government bonds appreciate during market crisis. The returns from government bonds can therefore be utilised to buy more stocks while they are extremely cheap (undervalued) in a market crisis. This process is known as portfolio rebalancing, and is one of the benefits of investing through AutoWealth.