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

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read
IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Winds of change: Private markets access for retail investors

Winds of change: Private markets access for retail investors

Investing in LTAFs, accessibility aside, needs careful consideration

Dorian Hughes
clock 02 July 2025 • 5 min read