Every day in the financial news we hear / see that the stock markets are soaring or struggling. We know that the vast majority of investors like to take a cautious approach to investing, balancing risk with reward. Hard lessons have been learned, new strategies implemented and as a result we believe that our clients positively benefit from our knowledge.
As with all Investments, there are inherent risks. One way in which you may be able to protect yourself against market risks is diversification. This can be achieved by spreading the risk ie. - holding a range of asset classes.
It's worth noting however, that they all react differently to market movements and that different classes will have a low correlation, meaning that performance between each one will differ.Overseas portfolio's perform well since then the individual may benefit from such a diversification.
NB -Be mindful that the UK stock market only makes up a small amount of the world's total market capitalisation.
Spiraling - Keep your Options Open
Many "domestic" investors who take their time to build a comprehensive portfolio tend to lack diversification and then start to lose track of what they have and then encounter a "broken portfolio". Simply, their own investments encounter static or negative group returns. Our Client Managers can assist with "Assett weighting", identifying both the positives and lesser performers and constructively work with you in maintaining a diversified asset portfolio.
Select Global believe that such attention to detail offers a more stable way to invest with the emphasis on delivering long-term growth for our clients, whatever the economic climate.