Question

	average Annual Return	Weight
aggregate bond index	1.12%	11%
Hedge Fund Index	3.57%	10%
Private Equity	3.26%	4%
Real Estate	4.03%	2%
Natural Resources	4.15%	0%
US Equity	10.77%	37%
int'l Equity	4.53%	10%
Emerging	8.43%	17%
Cash	1.56%	4%
Gold	8.13%	5%

portfolio management: what adjustment should be made under the current situation of COVID-19?

Answer 1

In the corona pandemic, with visible recession, equity markets will take the hit. The purchasing power of people will go down because of job losses and salary cuts.  People will go for safer investment options.

Out of the above options, safer options to invest in are: 1. Aggregate Bond Index

2. Cash

3. Gold

thus the Weights in those securities should be increased.

aggregate bond index		25%
Hedge Fund Index		15%
Private Equity		0%
Real Estate		0%
Natural Resources		0%
US Equity		7%
int'l Equity		7%
Emerging		7%
Cash		14%
Gold		25%