Why asset class diversification is crucial when investing
Investors who currently have all their money tied up in equities are having a bad time of it. The China crisis on Monday 24th August sent shockwaves around the world causing share prices to nosedive. Immediately after Black Monday the FTSE 100 was down 4.6% with £73.75bn wiped off the value of shares and a similar story played out across the globe everywhere from France and Germany to New York and Tokyo. Markets are still struggling to recover. Those with diversified portfoli
Diversifying investments the easy way – multi-asset portfolios
Any financial guru will tell you that the most important element of any investment plan is diversification. Putting all your investment eggs all in one basket is the riskiest strategy you could take and is to be avoided at all cost. Diversification can be achieved in various ways and at different levels. The first and most important way is asset allocation i.e. dividing your investments in to the different asset classes of stocks, bonds and property. If one asset class is suf
China’s Black Monday – what happened to your investments?
On 24th August, the Shanghai Composite Index (SHCOMP) fell 8% in a single day, plummeting 40% from its peak just a few short months ago in June 2015 after heady gains in the first half of the year. Black Monday not only affected investors in the country itself but has sent shockwaves around the world as billions have been wiped off equity markets prompting panic among investors. Perhaps you have incurred some significant losses yourself? Investing in equities always involves
