Hi all,
Given the recent market activity and increased volatility we’re all observing, we wanted to highlight some key Sharesight features that can be particularly useful for navigating these uncertain times more effectively.
One valuable feature to consider is the Drawdown risk report. Extending your date ranges in this report allows for a comparison of the current market dips with previous sell-off periods, such as the COVID-19 crash. This historical context can provide important perspective.
For a more in-depth analysis, utilizing custom groups can offer deeper insights. By classifying your assets, for example, as defensive versus speculative, and then applying these classifications to both your drawdown risk and diversity reports, you can gain a clearer understanding of your portfolio’s resilience. We recently wrote 8 ways to use custom groups.
The Exposure report is another significant tool during market downturns. It enables you to analyse your portfolio’s country and regional allocations. As different markets respond uniquely to current economic conditions, this report can help identify whether your geographic diversification is acting as a buffer or potentially creating concentrated risk. Reviewing your geographic footprint can inform rebalancing decisions during periods of global market stress.
It’s also worth remembering the ability to track traditional safe havens within Sharesight. By adding custom investments, you can monitor the performance of assets like gold, as well as your term deposits and cash accounts, alongside your market investments. This provides a comprehensive view of your overall wealth preservation strategy during volatile times.
For strategic financial planning, the unrealised capital gains tax report can be a useful resource. It allows you to model potential investment losses, which could be considered for tax-loss harvesting to offset gains made earlier in the financial year or to carry forward as offsets for future financial years.
Finally, with the currency fluctuations we’ve been experiencing, the performance report in Sharesight offers valuable insights by quantifying the impact of currency changes alongside capital gains/losses and dividends. Additionally, the multi-currency valuation report allows you to monitor your portfolio’s valuation in different currencies, providing a clear picture of how these movements are affecting your returns.
Ultimately, while market movements are beyond our control, the tools within Sharesight can empower you to make more informed investing decisions in any market environment.
If you require any assistance in implementing these features within your Sharesight account, our support team is readily available to help.
Stay informed,
The Sharesight Team
Important Note: This post contains general information only and doesn’t consider your personal objectives, financial situation, or needs. Before making financial decisions, please consider whether the information is appropriate for your circumstances and consult a qualified financial professional if needed.