Obvio client portfolios are built around intelligent diversification; high-quality bonds, select global equities, exposure to commodities and, in some cases, property. They are structured to materially reduce the impact of equity drawdowns. The infographic illustrates how a balanced obvio portfolio is designed to behave during 10%, 15% and 20% headline equity declines. The ongoing events of this weekend will likely produce daily market moves which, taken in isolation, may appear modest relative to the situation. However, when compounded over days and weeks, those moves can feel significant. It’s important to remember that headline equity indices do not reflect the reality of diversified client portfolios. As shown in the graphic, diversification works hardest during periods of stress. Yes, markets will fall. Yes, you will see short-term fluctuations on screen. No, it is unlikely to be anywhere near as severe as the headlines suggest. The instinct to react is understandable. If a lift displayed “plunge to basement, rocket through roof,” most people would step out. Financial news operates in much the same way; dramatic and attention-grabbing. Yet financial markets are the only industry I know where assets go on sale and buyers run away. Times like this are precisely why we built a plan. One that has been stress-tested through interactive Cashflow Modelling and designed with volatility in mind. For long-term investors, and particularly regular savers, periods of volatility are not a threat but an opportunity. Ongoing contributions during market weakness mean you are purchasing at lower prices, improving long-term outcomes. As always, myself and the team are here to talk through your portfolios and any concerns you may have. In the meantime our thoughts are with all of our clients, friends and colleagues in the Middle East/Cyprus, and with all those affected. We hope for a quick and peaceful resolution.