Hello, Risers,
In the wake of recent drag downs on the US equity markets and by extension our Rise stock portfolio, your investment team at Rise would like to share some thoughts with you regarding how we are protecting your portfolio. We’ve activated our hedging positions by adding new holdings to the Rise stock portfolio aimed at reducing the effects of adverse market corrections and giving us more exposure to assets that do well in high inflation and recessionary periods.
That is why we have added Invesco’s Commodity Index (DBC) to our portfolio. DBC tracks 14 of the most heavily traded and economically important commodities, which are poised to benefit from an environment of high inflation. This ranges from energy, precious metals, Agro commodities and base metals or industrial raw materials. We have also activated our market shorts which helps us reduce the impact of market decline.
These moves are meant to provide some stability and protection to our stocks portfolio and help you ride through the slump without feeling the need to sell out of our high-quality companies. Investors in our stocks portfolio will still experience declines due to changing Fed policy and market correction due to higher inflation. But in the long term, these declines allow us to buy strong companies at cheaper prices and will pay off in higher returns for long term holders.
For those who are not able to withstand the current corrections in the stock market or don’t have a high tolerance for volatility, our real estate and fixed income plans continue to provide strong stable returns and more consistency in the short term. We recommend diversifying into these plans until the stock market stabilizes.