Diversification has long been used to decrease investment risk by reducing exposure to a particular asset. It works within a single asset class — a portfolio of stocks is less risky than holding shares in one company — but can be more effective across different asset classes.
Investment Perspectives: What is fact and what is fiction? That question has never been more pertinent as the UK weighs up the arguments ahead of the In/Out referendum on 23 June.
Our report specifically looks to address five myths around key areas of the Brexit debate: immigration, trade, financials, public finance, and foreign investment.
Myth 5: foreign investors will withdraw from the UK if it leaves the EU.
Myth 4: The UK's budget balance would improve substantially if we leave the EU.
Myth 3 - Swiss financial services have thrived outside of the EU: this could be a model for the UK.
Myth 2: The UK's trade balance will collapse if we withdraw from the EU.
Myth 1: restricting migrants from the EU will lead to better prospects for UK workers
Fear about US monetary policy and China’s economic slowdown is affecting global financial markets.
China has caused a lot of anxiety this year. Investors were shaken by the devaluation of the renminbi by the People’s Bank of China in August, which raised fears of a ‘hard landing’ for its economy and knock-on deflation for the rest of the world. Yet China is far from over as an investment theme.