Why diversification will be especially key this year

Despite recent wobbles, global equities have provided high single digit returns year to date. The consensus view has turned more bullish and there are a number of reasons to be positive. In spite of this, we must remember we are a long way from a full resolution to the financial crisis and the world is far from normality. We are in a very different cycle to that which we are accustomed, but a disciplined focus on valuation should help investors ride out the bumps along the way. Deleveraging will keep overall growth subdued for several years to come and central banks will keep monet...