Now, more than ever, there is a greater need for investors to revisit diversifying strategies for their portfolios, writes Elizabeth Savage, research director at Rathbones.
An investor trying to make a definitive assessment on the US or UK economy, based solely on the level of equity markets, faces quite a challenge given today’s landscape. The last time equities were at this level back in 2007, UK interest rates was close to 5%; CPI inflation was running close to 3%; unemployment was hovering near 5.5%; 10-year real bond yields were close to 2%, and the Bank of England’s balance sheet was something investors thought very little about. Wind forward six years, and the interest rate is at 0.5%; CPI inflation is running at 2.8%; unemployment is hovering ar...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
