RIA: Portfolio Performance Review – August 2024

In August 2024, global and local equity markets suffered significant drops, leading to poor performance for Ria portfolios. On a 1-month basis, all portfolios performed negatively except Very Conservative.

Nonetheless, all portfolios remained positive on a year-to-date basis and since Ria launched due to the strong performance of ASN Equity Malaysia.

Market Commentary – August 2024

In early August 2024, global financial markets were hit by intense volatility due to the unwinding of leveraged trades, especially in currency and equity markets.

The Japanese TOPIX index plunged 12% on August 5th, triggering a cascade of losses worldwide, including a 3% drop in the U.S. S&P 500 and significant declines in Europe and Asia.

Malaysia's KLCI also suffered losses, and the Malaysian ringgit appreciated notably, likely due to its role as a proxy for bets on the Chinese yuan.

This turbulence was driven by investors scrambling to cover their leveraged positions, particularly those relying on low volatility and yen funding.

Markets began to stabilize by the week's end, but the risks that sparked the turmoil persists.

RIA Reminder – Short-Term Market Volatility Presents Opportunities for Long-Term Investors

Recent market fluctuations offer a unique opportunity for long-term investors.

By investing in an automated investment platform such as a robo advisor, investors can capitalize on these moments by leveraging dollar-cost averaging to acquire more assets at lower prices without worrying about rebalancing which is done automatically.

Investing in a diversified portfolio according to your risk profile will align your investments with your long-term financial goals, reducing emotional bias and enhancing investment resilience.

By staying the course through volatility, you position yourself for potential future growth, as markets typically recover over time.