Why it’s important to build resilience in your investments in a volatile world
- Such an approach makes it easier to navigate economic uncertainty, emerge stronger and capitalise on new opportunities, says Hou Wey Fook, chief investment officer at DBS
- Finance expert, with 35 years of experience, recommends investors look beyond Asia, follow a clear strategy, make periodic adjustments and take a long-term view
In the business of investment, there is no doubt that accumulated experience and the wisdom of years counts for a lot. It means, for instance, that professionals who have witnessed events such as the 1997 Asian financial crisis, the extensive fallout from 2008’s subprime mortgage meltdown and, more recently, the aftershocks of the coronavirus disease, Covid-19, can bring a real sense of insight and perspective to whatever they do.
So, when offering investment advice in today’s post-pandemic world, they understand the importance of building resilience in any portfolio.
This approach makes it easier to withstand economic headwinds and market corrections, and helps to mitigate fears or uncertainties. But it also allows investors to maintain essential liquidity, rebalance their holdings if necessary and capitalise on new opportunities – as and when they arise.
Not surprisingly, building resilience is an approach long advocated by Hou Wey Fook, chief investment officer of DBS in Singapore, who has been managing portfolios, including institutional and mutual funds, for 35 years. His focus over the past 15 years has centred on the needs of private wealth clients.
Hou, who is also part of the team that serves Treasures Wealth customers with assets of at least S$350,000 (US$260,000) to invest, says experience has shown him that it consistently pays to follow a clear strategy, take a long-term view and make periodic adjustments when market opportunities allow.
