Wealth management was tough and faced the challenges all investors were confronted with during the Great Recession. The Great Recession lasted from Q4 December 2007 until Q2 June 2009. The country’s gross domestic product fell during this period 4.3% with unemployment doubling from 5 percent to 10 percent at its peak. The loss of portfolio values for U.S. household as a result of the recession was $19.2 trillion, according to an April 2012 report by the U.S. Treasury Department.

 Wealth Management Education

All investing involves risk, including the possible risk of losing some or all of the principal value of your investment. Managing wealth requires the employment of techniques and strategies designed to minimize these risks. Events, such as a wide scale recession are catastrophic in nature and not characteristic of the types of ups and downs investors experience week-to-week, month-to-month in the financial markets. Educating yourself about the strategies, trends, and reasons for active financial management could prove the difference between creating wealth or creating losses.

{{cta(‘040b805d-073d-44cb-aa7d-ebc878c07207′,’justifycenter’)}}A Comparison of Effective Portfolio Strategies

The portfolio strategy that provides you with the best level of downside protection in a falling market depends on the risk you are minimizing. It is of course important to remember that with all strategies involving wealth management do not guarantee a profit or that losses will not occur. Active monitoring is necessary in order to make adjustments to the portfolio and employ the correct strategy.

Why Portfolio Management Strategies are Important

Investors must learn to manage their portfolio with strategies designed to minimize the impact of loss.  The behavior of the financial markets is, at best, unpredictable. The variability of market returns from asset class to asset class demands a balanced, diversified, broad-based approach to investing in order to properly manage risks and maximize the potential for returns.



Employing a defensive strategy provides you with a great way to protect your portfolio against downside losses when the market loses value. The value of effective managing can be the difference between making and losing money. An experienced investment manager understands the importance of protecting their client’s wealth, which is the value they bring to the table.