Many portfolios are based on global index funds – with a strong overweight of US stocks and tech stocks. A risk in times like these. How investors can diversify now.
The storm had been in the air for a long time. But when it really hit at the beginning of August, it was a shock for many. Within a few days, the stock markets plummeted, with the Dow Jones in the USA falling from more than 41,000 points to almost 38,500, a loss of more than six percent. The DAX also collapsed, falling from more than 18,500 points to almost 17,000. Japan was hit hardest: the Nikkei lost more than ten percent in one day – the biggest daily loss since the bursting of the great Japanese bubble in 1987.
Source: Stern
