Asset Allocation 

Cutting housing risk

Chris Dillow

Chris Dillow

Many investors love housebuilding stocks. But there’s a problem with them. Although they do very well in good times, they suffer horribly in recessions. In the 1990-92 downturn, for example, they lost 40 per cent and in the 2008-09 slump they lost 70 per cent. This poses the question: can we protect ourselves from such losses without foregoing the high returns in good times?

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