Andrew Milligan: It is time to reappraise portfolio construction

Tactical opportunities

Many a multi-asset investor looking at their portfolio will not like the red ink spreading across the screen.

It is no surprise that share prices are reacting to the possibility that recession lies ahead if inflationary pressures force central banks to tighten too much. To make matters worse, the typical portfolio had been unduly focused on high growth shares with rather too little in terms of safe and stable fixed income or cash, the consequence of absurdly low yields for many years as central banks manipulated bond markets. The good news is that a reappraisal is taking place, possibly opening up tactical opportunities and certainly a strategic readjustment for fixed income. All eyes may be on ...