Investing in a crisis-resilient way means structuring a portfolio so that it remains stable even during turbulent market phases and aims to preserve capital. The objective is not to avoid all risks — that would effectively mean not investing at all. A common misconception is that withdrawing from markets entirely and holding cash on a bank account is a safe option in uncertain times. In reality, interest rates on such deposits often fall below the rate of inflation, meaning that the purchasing power of the balance steadily erodes. What appears to be a safe investment is, in real terms, losing value.

Crisis-resilient investing therefore involves taking selected, well-assessed risks to offset inflation and achieve moderate growth. Capital preservation during crises is achieved by engaging with markets in a controlled manner rather than watching savings diminish as inflation takes hold. The key is the right balance: investors do not need a 100% equity allocation to outperform inflation over the medium to long term. Solid conservative or balanced strategies can provide returns above inflation without exposing investors to full equity volatility. In short, crisis-resilient investing means seeking return opportunities while maintaining maximum stability and protection against severe losses.

Inflation is a silent destroyer of wealth — year after year, it reduces the purchasing power of money. Protecting capital against inflation is therefore a top priority when investing with crisis resilience in mind. The most effective shield against inflation consists of real assets and return-generating investments: high-quality equities, real estate, selected bonds, as well as commodities or precious metals. These asset classes represent real economic value and have the potential, over longer periods, to keep pace with or even outperform inflation.

Inflation-linked bonds may appear to be a straightforward solution, but they require careful assessment. These securities often have significant interest-rate sensitivity (duration). Rising interest rates tend to push their prices down — and this typically occurs precisely when inflation is high and central banks respond by tightening monetary policy. Two opposing forces then act simultaneously: higher inflation adjustments on one side, but price losses due to rising interest rates on the other. As a result, the expected inflation protection can be partially offset.

To protect wealth from inflation, it is therefore essential to rely on a diversified mix of asset classes. No single measure offers perfect protection. What truly matters is that the overall portfolio return exceeds inflation. This is achieved through broad diversification into assets with real value-creation potential and through flexible portfolio management that adapts to inflation dynamics while also cushioning broader market risks.

Diversification — spreading capital across different asset classes and investment segments — is one of the most fundamental principles of investing. Its benefits become particularly clear during periods of market stress. The reason is simple: Different assets often react differently to the same event. For example, when equity markets fall sharply, other assets such as high-quality bonds or gold may remain stable or even rise in value. By allocating capital across multiple asset classes, investors reduce the risk that a single negative development disproportionately impacts their overall wealth.

In uncertain environments, the advantages of a broadly diversified portfolio are especially evident. To mitigate both inflation-driven risks and market turbulence, a portfolio should include a wide range of asset classes. Relying solely on one or two categories is rarely sufficient — the right mix is crucial. Alongside equities and bonds, real assets such as real estate, commodities, or alternative strategies can add important stabilizing qualities. Avoiding concentration risks and capturing opportunities across different markets is essential.

A disciplined Multi Asset approach can support this objective. By distributing capital across various return drivers and reallocating dynamically when necessary, the portfolio can adapt to shifting market conditions and maintain resilience in turbulent periods.

Gold is often viewed as a safe-haven asset — and indeed, throughout many historical crises, the metal has gained in value, whether during periods of high inflation or times of declining trust in currencies. As a tangible asset without issuer risk, gold serves as a form of protection for many investors: it is globally recognized, limited in supply and can help stabilise a portfolio in uncertain environments. A moderate allocation to gold can therefore enhance resilience and investor confidence.

However, relying solely on gold is not advisable. Commodities as a whole — including industrial metals, energy, and agricultural goods — also play an important role in capital preservation. They often rise in value during inflationary periods or supply shortages, helping to offset weakness in other asset classes. Additionally, commodity markets frequently behave independently of equity and bond markets, offering valuable diversification benefits.

For a truly crisis-resilient investment approach, investors should consider commodities in broader terms rather than focusing on a single metal. Other precious metals and real assets can also add meaningful value. In a well-diversified, actively managed Multi Asset portfolio, these components can be deployed selectively to enhance the portfolio’s ability to withstand periods of stress. Careful, active allocation ensures that these real assets work effectively alongside the other building blocks of the strategy.

Volatility strategies are investment approaches that deliberately use market volatility — the intensity of price fluctuations — as an independent return source. It is important to distinguish true volatility strategies from so-called "low-volatility" equity approaches: while low-volatility strategies simply invest in stocks that tend to fluctuate less, volatility strategies treat volatility itself as an asset class, typically implemented through options or other derivatives.

These specialised strategies require significant expertise but offer unique diversification benefits. Broadly speaking, there are two types:

• Volatility-premium strategies that seek to earn additional income, often by selling options or volatility — similar to collecting insurance premia.
• Long-volatility strategies, which benefit when volatility rises.

The latter category includes tail-risk hedging. Tail-risk hedges are designed to gain sharply in value during extreme market dislocations — for example by purchasing put options or similar "insurance" — like instruments against steep market declines. When volatility spikes during a downturn, these positions can generate meaningful gains and help offset losses in riskier assets such as equities. In this way, they act as a stabilising counterbalance and increase the resilience of the overall portfolio.

However, tail-risk hedging comes with a cost: in calm markets, these positions often behave like insurance premia and can reduce returns. Therefore, sizing and implementation must be carefully managed. For private investors, such volatility components are typically accessible through specialised funds or structured solutions.

A further refinement are dispersion strategies, which exploit the relative behaviour of individual-stock volatility versus index volatility. Dispersion can make volatility-premium strategies more robust or allow long-volatility approaches to be implemented with lower — or even positive — carry in quiet markets.

Within a well-diversified investment framework, volatility strategies can be a valuable building block to hedge extreme risks, strengthen portfolio stability and generate additional, independent returns.

One of the key lessons in crisis-resilient investing is this: flexibility matters more than strict rules. Rigidly adhering to benchmarks — indices that dictate which securities must be held and in what weight — can become a major disadvantage in uncertain market environments.

Why?
Benchmarks force portfolios to invest according to market capitalisation or debt levels, regardless of whether these positions are fundamentally attractive or currently risky. A prominent example is bond indices: issuers with the highest debt receive the highest weight in the index. From a risk perspective, this is counterintuitive. A heavily indebted country or company may carry elevated credit risk but would still receive a disproportionately large allocation in a benchmark-oriented fund.

A flexible, benchmark-independent approach avoids these concentration risks. Portfolio managers can prioritise quality, risk diversification and capital preservation, instead of mechanically following index allocations.

In crises, what matters most is not outperforming an index — it is protecting capital.
A flexible Multi Asset strategy without benchmark constraints can, for example:

• Reduce equity exposure at early signs of stress,
• increase defensive positions such as high-quality bonds or cash,
• raise liquidity, or
• allocate capital to opportunity-rich segments outside the benchmark.

All of this would be difficult — or even impossible — under strict benchmark rules.

Benchmark independence creates decision-making freedom. It allows the portfolio to be adjusted dynamically to market conditions rather than sliding downward together with the index during the next downturn. For investors focused on capital preservation, this flexibility is a significant advantage.

Especially in periods of heightened uncertainty, many investors tend to act impulsively — selling in panic or constantly reshuffling their portfolios. Yet patience is one of the most valuable qualities in investing. A long-term investment horizon helps investors sit out crises and benefit from the subsequent market recovery. Historically, broadly diversified portfolios have delivered positive results over decades, despite temporary setbacks.

Those who stay disciplined during turbulent periods are often rewarded. The key is to have a well-designed strategy and to stick to it. Short-term underperformers can become long-term winners — and the reverse is also true. For example, a money market fund may appear to be the "best performer" during a stock market crash simply because it does not lose value. But without any growth component, long-term purchasing power erosion is almost guaranteed. Stability alone is not a substitute for long-term wealth creation.

A long-term approach protects investors from making fear-driven decisions during crises.
Yes, it is psychologically challenging to tolerate temporary losses — staying invested requires resilience. But those who avoid selling during stressful phases prevent temporary book losses from turning into permanent damage. Over time, markets tend to recover, and diversified portfolios typically regain value.

Ultimately, a long-term investment horizon helps preserve wealth and allows it to grow, instead of diminishing it through short-term reactions driven by uncertainty.