Rathbones' Coombs: Why I am buying diversifiers

Rathbones' multi-asset head David Coombs explains why he is seeking out property and long/short funds as diversifiers, while making the shift in to large caps.

The momentum behind growth and falling unemployment in the US has continued. However, both the Federal Reserve and investors are aware of the fragility of the recovery, especially as corporates are not reporting significant earnings growth. Equity markets look fair value globally, which means that earnings growth needs to be realised for markets to climb higher. This will, of course, have repercussions for the trajectory of quantitative easing and any interest rate rises from here. We do not expect that rates will rise imminently, as this scenario is also dependent on the consumer'...