Previous columns have highlighted in some detail why markets will continue to climb the wall of worry and yet also the importance of increasing diversification as an investor’s risk-adjusted investment journey unfolds, especially as financial goals draw near. To this end, the portfolios employ various ‘alternative’ assets including bonds, precious metals, commodities, infrastructure and commercial property.
Also included are capital preservation trusts, which are sometimes the unsung heroes in this category given their track record and consistency of returns over the various cycles. This reduced volatility is particularly helpful as a source of firepower when markets succumb to the inevitable wobble.