Josh Brown: We're witnessing a 'triumph' for diversified portfolios

CNBC's "Halftime Report" discuss markets with the investing team and Rob Sechan of UBS Wealth Management.

If the coronavirus has you spooked, you’re in good company. Even wealthy investors are building up their cash cushions.

Global markets haven taken a beating over the last two weeks, amid worries about COVID-19. The pain continued on Monday morning as the S&P 500 tumbled by more than 7% and trading was halted.

Recent market volatility and worries over supply chain disruption have also spurred concerns about an approaching recession.

Well-to-do investors are battening down the hatches, according to Michael Sonnenfeldt, chairman of TIGER 21, an investment club for high-net worth people.

“This is sort of a black swan event, and you couldn’t have anticipated it even a month or two ago,” Sonnenfeldt said.

“Most people who sold businesses and are in wealth preservation mode are focused on mitigating losses rather than getting some kind of huge advantage.”

TIGER 21, an organization of about 770 people with at least $10 million to invest, stands for The Investment Group for Enhanced Results in the 21st Century.

″“I would say that the real goal is what would be called an all-weather portfolio,” Sonnenfeldt said. “One that can survive in the bad times and thrive in the good times.

“You do it through prudent diversification,” he said.

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