'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...

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

Watch Professional Adviser's Working Lunch on the Baillie Gifford Managed Fund- The benefits of diversification in an uncertain world

Catch up on the discussion

Professional Adviser
clock 30 June 2025 • 1 min read
Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

Party politics: Why investors should celebrate AIM's 30th birthday, even if the government won't

AIM has helped 4,000 businesses raise £135bn since launch

Eustace Santa Barbara
clock 19 June 2025 • 4 min read
AIM at 30: Why advisers should take a fresh look at the UK's junior market

AIM at 30: Why advisers should take a fresh look at the UK's junior market

'We see AIM as a jewel in the crown with long-term appeal for the right clients'

Oliver Brown
clock 17 June 2025 • 4 min read