Hi ,
Last Friday's market selloff caught a lot of attention.
But what I found more interesting wasn't the drop itself, it was what caused it.
The market fell partly because the economy was too strong. A stronger jobs report meant inflation could stay stubborn, which meant rates could stay higher for longer, which meant the assumptions holding up many portfolios started getting questioned.
It's a good reminder that we may no longer be investing in the same environment that rewarded investors for the past 15 years.
I wrote a short piece on this covering what's changed, why passive index investing deserves a second look, and why stress-testing your portfolio matters more now than it did before.
You can read it here:
👉 https://www.linkedin.com/pulse/fridays-market-drop-revealed-something-most-investors-zest-chia-rhzzc
One question worth sitting with after you read it, was your portfolio built for the old world or has it been stress-tested for the new one?
If that question resonates, I am happy to have a quick conversation.
Best Regards,
Zest
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