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Achieving diversification as the investment landscape evolves

John Baron explains his approach when seeking to protect past gains
Achieving diversification as the investment landscape evolves

Consensus appears to be that markets are in ‘melt up’ mode as artificially low interest rates and lack of yield elsewhere help to assuage any concerns about the economic recovery and rising inflation. It is particularly at such times that investors should ensure portfolios are adequately diversified relative to risk profiles in order to protect against setbacks. Yet, while acknowledging individual circumstances, there is little consensus as to how this should be best achieved – particularly as a new market regime unfolds. The good news is that sound asset allocation can still produce good risk-adjusted returns.

 

The theory

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