Asked on 09 May 2019
It is set to Balanced profile with 68 percent in equity and the rest in bonds and gold.
So far it has given me a return of 4 to 5 percent. Given that bonds tend to increase in price while equities are down, I'm thinking of increasing the risk profile so that my robo advisor will sell the bonds and buy more equities
It's difficult to time the markets and predict which asset class will outperform, and there are periods where equities and bonds are not negatively correlated. Rather than adjusting your risk tolerance based on market conditions, you should assess whether you are invested in the portfolio that is appropriate for your investment goals, investment horizon and risk tolerance. At Endowus, we believe you should remain invested long-term in portfolios last the test of time and allow you to stick to your investment plan throughout your investment life-cycle.
We publish historical data of our portfolios for the past 15 years, including the 2008 Global Financial Crisis, to determine the worst drawdown in any rolling 12 month / 5 year and 10 year periods, because we want our clients to fully understand the potential drawdowns they can see.
You can read more about how we invest here. Hope this helps!
I would suggest to stick with your risk allocation level.
You got the risk profile based on the questionaire, and I assume you did not set it to balanced yourself. So, if you want to adjust the risk higher, you have to do your own risk assessment because higher risk could mean higher drawdowns too.
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