Last year I pointed out that very simple portfolios held up well during the slump in share prices caused by the pandemic. But how have they done since then? The answer is: just fine.
Let’s consider the portfolio I proposed in early 2020 – one comprising 50 per cent in a fund that tracks MSCI’s world index, 20 per cent in gilts and 10 per cent each in UK cash, gold and US dollars. In the last 12 months, it has risen 11.7 per cent as big gains on equities have outweighed small losses on gilts and gold.