John Baron's Investment Trust Portfolio 

Reappraising diversification

Reappraising diversification

Last month’s column (Keep calm and carry on’, 9 April 2020) touched on the unprecedented rise in correlation between a number of asset classes, including bonds and commercial property, which has surpassed that of even 2008. There have been few safe havens during the recent market downturn – a downturn that has also been characterised by significant discount volatility. While important to retain perspective, this has implications for portfolio construction when seeking diversification. And given the recent market bounce, now is a good time to consider these given the likely return of volatility.

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