The importance of portfolio resilience in times of heightened share market volatility
Blackmore Capital’s value proposition is to generate long-term capital appreciation by investing in Australian listed equities. We aim to do so with lower volatility and greater downside protection relative to the ASX 200 Accumulation Index.
With the ASX 200 experiencing its worst performance in over three years, we thought it was a timely reminder to illustrate how our portfolios have performed over the last 4 years in times of share market turbulence.
The series of charts (links below) highlight the 4 periods when the ASX 200 has fallen by greater than 5% and compares this with the performance of the Blackmore Capital portfolio's.
The charts measure:
-> the peak to trough falls in ASX 200 and the Blackmore Capital portfolios, and
-> the number of days it takes the ASX 200 and portfolio to recover to its previous peak [exception Sept/Nov 2018]
It is our investment proposition that we are much more likely to preserve wealth if the elements of earnings quality and balance sheet conservatism are studiously adhered to throughout the investment cycle. The value of sound investment principles tends to be valued more highly in periods of market duress.
Full chart packs can be found here -> Chart Packs