Ben Kumar: Why you need 'common sense' investing

'A satisfactory outcome'

clock • 4 min read

Investors often ask questions about portfolio diversification, says Ben Kumar, who explains why common sense should always prevail ...

Over the last five years, the US stock index has outperformed other global markets by 80%. So, people ask: "Why didn't you just invest in the USA?"  Over the same five years, the US tech sector has outperformed the broad US market by a further 50%.  So, really: "Why didn't you just buy the US tech sector?" Maybe you were fortunate and did just invest in US technology. But Amazon has outperformed US tech by over 400%. So, in the end: "Why didn't you just buy Amazon?" The same questions are asked in the world of bonds. Why not buy just Italian bonds, or just companies that prod...

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 Multi-Asset

Partner Insight: Strategic flexibility meets value discipline

Partner Insight: Strategic flexibility meets value discipline

Combining long-term positioning with tactical agility delivers alpha while navigating concentrated equity leadership and shifting global opportunities, says Keith Balmer, Senior Economist, Multi Asset team, Columbia Threadneedle Investments.

Columbia Threadneedle Investments
clock 22 January 2026 • 10 min read
Partner Insight: Navigating 2026's investment landscape amid AI expansion and rising risks

Partner Insight: Navigating 2026's investment landscape amid AI expansion and rising risks

The outlook for 2026 looks positive, but downside risks are becoming more complex, says Robert Plant, Portfolio Manager, Multi Asset Solutions, Columbia Threadneedle Investments.

Robert Plant, Portfolio Manager, Multi Asset Solutions, Columbia Threadneedle Investments.
clock 15 January 2026 • 5 min read
Partner Insight: Fed rate cuts drive policy divergence as Central Banks chart different courses

Partner Insight: Fed rate cuts drive policy divergence as Central Banks chart different courses

As the Federal Reserve continues its rate-cutting cycle, a widening gap in monetary policy among major central banks is creating new dynamics for investors says Anthony Willis, Senior Economist in the Multi-Asset team at Columbia Threadneedle Investments.

Anthony Willis, Columbia Threadneedle Investments
clock 13 January 2026 • 5 min read