Risk asset exposure should be 'rented' not 'owned'

ON ASSET ALLOCATION

Saltus' Dan Kemp looks at how the Japanese and Libyan crises have impacted capital markets.

Investor reaction to the devastation in Japan and revolution in Libya has turned human tragedy into a significant market dislocation. Such dislocations always create a series of threats and opportunities. The most serious threat presented by the current downturn is the temptation to believe we can become overnight experts in geopolitics, combat strategy or nuclear physics. We can’t – and pretending we can by remaining glued to rolling news is likely to be an unprofitable waste of time that can be better used to identify genuine opportunities for our investors. The outcome of the crisi...