Simon Evan-Cook: Is diversification dead?

'Last two years particularly stark'

clock • 3 min read

At a time when investors are questioning the value of diversification, Simon Evan-Cook explores whether a varied approach pays off...

Diversification has taken quite a drubbing in recent years. This is coming from a Spurs fan, so you can rest assured I know a drubbing when I see one. That said, although it has not been a fantastic decade for diversification, it is the last two years that have been particularly stark. In a nutshell, holding anything other than America's largest companies or, in the bond world, the longest-duration, US-dollar denominated bonds, has been a largely pointless exercise since 2018. So it is fair to ask then, is diversification itself a waste of time? And a potentially expensive one at that...

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 Investment

Technology and emerging markets top performing sectors in May

Technology and emerging markets top performing sectors in May

FE Analytics data shows

clock 01 June 2026 • 1 min read
Rathbones brings together responsible investment in Centre of Excellence

Rathbones brings together responsible investment in Centre of Excellence

Combines ethical and sustainable research capabilities

Patrick Brusnahan
clock 29 May 2026 • 1 min read
Why active management matters more for income investors

Why active management matters more for income investors

Significant implications for advisers and investors relying on passive income strategies

Rory Sandilands
clock 29 May 2026 • 4 min read