'New normal': Lessons for investors against a backdrop of uncertainty

'There is a sense that the markets may have entered a new phase'

clock • 3 min read

Kate Rainbow looks at the importance of being a 'portfolio setter, not taker' in a lesson advisers can share with their clients...

Up until recent weeks, traditional ‘60/40' multi-asset investors had seen contrasting outcomes, if taking a ‘passive' approach to investing: In equities, global market capitalisation indices have delivered strongly partly because two of their most significant constituents - a regional allocation to US equities (>60%), and, within that, concentration to the ‘Magnificent seven' (c.30% of the S&P 500) - had continued to outperform In UK bonds, investors allocating to traditional UK gilt indices have seen these allocations decline in value; once it became apparent that higher interest ra...

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