It’s become almost a trend in recent years to condemn the 60/40 portfolio, which invests 60% in stocks and 40% in bonds. And with good reason. Thanks to an absurdly low interest rate environment, it didn’t offer the same diversification benefits one would expect in a more reasonable world. Yet investors need to recognise [...]
Bonds have worked so well for so long that it can be hard to picture your portfolio without them. Yet, following the worst year for global bond markets in decades, there are real anxieties over their prospects going forward. The biggest threat they face is inflation. As prices rise, they erode the value of [...]
Investors can often get caught up in financial market drama, making it increasingly difficult to maintain a balanced portfolio. This article looks at the importance of balance and why we think regular rebalancing is key. Please note that when we’re talking about a “balanced” portfolio in this article, it’s not to be confused with [...]
