VTI - Stay Diversified Don't Fear Corrections
- Last month, we saw volatility increase, with the major indices dropping from their highs. Since then, equities have resumed their path higher.
- There are still reasons to be optimistic, with vaccine roll-outs progressing in the U.S. and economic growth estimates being adjusted higher.
- However, rising yields have pressured equity and fixed-income markets, which have grown overly reliant on ultra-low interest rates.
- Staying diversified is the best course of action here. Sectors are impacted by rising yields and higher growth expectations in different ways.
- With broad market funds very reliant on Tech, investors would be wise to evaluate their portfolio to ensure they are not too concentrated.
For further details see:
Stay Diversified, Don't Fear Corrections