A look at the annual reports of the robo-advisors on 2020 shows it clearly: the more aggressively a portfolio is set up, the faster it loses value in a crisis (can be read at Scalable Capital or Ginmon, for example). High risk also promises significantly higher returns over a longer period of time. In the event of a crisis, however, the portfolio value collapses correspondingly faster. The reports on the various risk categories of the digital asset managers in exness forex also show that conservative portfolios recover more quickly from their losses - but also increase in value more slowly afterwards. Which risk you should take depends especially on your investment horizon. The longer you are already holding your securities, the more likely you are to pursue an aggressive strategy and hope for good returns in the long term. Short-term investments with high risk, on the other hand, are purely speculative. Certain sectors were able to recover very quickly after the initial shock in March 2020, or even made strong gains afterwards. Among the big winners are, for example, the marketplace giant Amazon, the Google parent company Alphabet Inc. or the music streaming platform Spotify. All securities performed excellently even after the big crash and have been able to maintain their high prices so far. In general, the Corona pandemic benefited above all providers of digital everyday and professional solutions, from food delivery services and online marketplaces to messenger and video conferencing software. For some pandemic winners, however, things quickly went downhill again. Delivery services and providers of niche products such as Teamspeak or Just Eat Takeaway (Lieferando) in particular reached their all-time high in mid-2020 and fell back to their pre-crisis values shortly afterwards. Tip: This shows again that you should primarily include companies in your portfolio that have already been successful in the long term and that are ideally themselves represented on the market with a broad product range. Note: Crisis winners can quickly lose importance as the market recovers and everyday life normalises. And no one can determine with certainty the right time to buy and sell in the short term. The Corona pandemic has emphatically shown us the weak points in the equity business. Globalisation and the ever-increasing interconnectedness of individual markets also offer private small investors many interesting investment opportunities. The boom of ETFs, online brokers and stock exchange forums is additionally fuelling this development. On the other hand, the sectors are more interdependent than before, so economic crises can jump from one market to another more quickly. In addition, private investors act more collectively and are no longer dependent on the advice of professional stockbrokers. On the one hand, this creates a new market equilibrium, but it also makes individual price trends more unpredictable. The perfect portfolio that takes all risk factors into account and is armed against every eventuality does not exist. But you can make your share portfolio more crisis-proof: With a globally positioned portfolio that is diversified into several sectors, with the knowledge of market-psychologically induced price drops and recoveries, and with the patience to ride out these temporary changes without panicking. Aggressive portfolios suffer the biggest losses
Winners in the crisis - losers afterwards?
Summary
