Senior Macro Strategist Teeuwe Mevissen's research note, titled "Don't throw away a nest egg!" from Rabobank, emphasizes the importance of maintaining a financial safety net and diversifying investments to weather economic uncertainties and market volatility. This is particularly crucial for individuals with modest means who may face job losses during economic downturns.
Here are three key quotes from the note to illustrate this point:
1. "As this week made clear once more, it is always important to keep a nest egg for a rainy day. Being able to weather storms is crucial when one is invested in risky assets so one is not forced to sell risky positions when it hurts most i.e. during sharp corrections as we saw very recently"[1].
2. "Moreover it also teaches us to not put all your eggs in one basket. People who had a concentrated stock portfolio in tech surely must have panicked briefly seeing their stocks tank with double digit percentages"[1].
3. "Still, these signals from central banks make one question again if central banks are there to protect market participants and to what extent this goes hand in hand with true capitalism"[1].
Citations:
[1] Dont-throw-away-a-nest-egg-.pdf
