Investors are feeling anxious about the possibility of another financial crisis, with 4 in 10 believing the U.S. is already in one, according to a new study by Nationwide. And while having an advisor and a diversified portfolio could prove crucial in protecting one’s finances, John Guthery, CFA, Chief Investment Officer at FusionIQ, told InvestmentNews’ Gregg Greenberg that other approaches to diversification are critical in these times.
“Given the rapid increase in interest rates following a prolonged period of easy money, we are already seeing impacts to the economy and the financial markets. Higher rates will, almost by definition, have an impact on equity and commercial real estate valuations,” John said. “That said, we do not have to have a full blown ‘crisis’ for investors to feel the pain of a weaker economy and financial market volatility. I continue to stress the need for diversification not only in asset classes, but also financial institution diversification.”