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

Talking with… Rathbones Asset Management's James Thomson

Talking with… Rathbones Asset Management's James Thomson

The series continues as Richard Romer-Lee chats to James Thomson

Richard Romer-Lee
clock 14 April 2025 • 4 min read
Neil Woodford teases 'active strategy' platform launch

Neil Woodford teases 'active strategy' platform launch

Last year's newsletter was first step back into financial services

Cristian Angeloni
clock 14 April 2025 • 2 min read
A timely reminder that gilts tend to be more stable than equities

A timely reminder that gilts tend to be more stable than equities

'Two useful rules for those seeking to allocate some of their retirement savings into UK gilts'

Adrian Boulding
clock 14 April 2025 • 4 min read