Volatile Markets Prompt Investors to Seek Balance Across Asset Classes

The recent equity market volatility has investors looking for ways to balance their portfolios. The pressure on US Treasury yields and growth stock valuations, combined with rising tensions in the Middle East, have increased account volatility for those with concentrated equity positions.

Some investors consider rebalancing by allocating a portion of their portfolio to asset classes that have historically shown lower correlation with equities. These include Gold, Bitcoin, and oil and energy assets, which have been moving somewhat independently of broader equity markets in recent weeks.

The Middle East situation has introduced a geopolitical risk premium that has supported energy markets, while elevated Treasury yields and questions around US dollar credibility have drawn attention to gold and Bitcoin.