Anthony Rayner: Is diversification dead?

High valuations across financial markets

clock • 3 min read

Any reports of the death of diversification have been greatly exaggerated, argues Anthony Rayner, and while bond valuations may be stretched, there remain many different ways to diversify risk in multi-asset portfolios

The number-one question we are asked by clients is how to structure a truly diversified multi-asset portfolio when bonds are so expensive. This is closely followed by concerns about high valuations across financial markets in general. Both of these points relate directly to concerns about preserving capital. The hierarchy of risk in multi-asset funds tends to be dominated by equity risk. This is currently the case, so it is right to consider how to diversify that. What is certain is it will not always be the same asset class that is the best diversifier, as the behaviour of asset classes...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Fahad Hassan: When good news becomes an inflation problem

Fahad Hassan: When good news becomes an inflation problem

'Markets have been adjusting to the risks through valuations all year'

Fahad Hassan
clock 29 September 2026 • 6 min read
Healey promises 'new age of industrialisation' ahead of Budget

Healey promises 'new age of industrialisation' ahead of Budget

Keeps quiet on personal taxation, pensions or savings at Labour’s conference

Isabel Baxter
clock 28 September 2026 • 2 min read
MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

Treasury Committee report

clock 23 September 2026 • 2 min read