Balance caution with opportunism by investing in a low equity strategy
Risk-averse investors fled the market in droves as the COVID-19 crisis hit, opting for the security of money markets, rather than suffering through the volatility. However, it seems the appetite for equities has returned now that the markets are flying. While this behavior is understandable, it is also counter-productive for long-term investors. Many who followed this pattern would have locked in losses and missed out on the recovery. Tim Acker, portfolio manager from Allan Gray, joins Kaya Bizz to discuss why investing in a low equity fund could be better than trying to time the market.